GST applicability on penal charges clarified: penal charges by regulated entities are not subject to GST; related exemptions regularised. Penal charges imposed by regulated entities in compliance with RBI directions are not subject to GST. RBI regulated Payment Aggregators performing settlement and handling funds fall within the acquiring bank exemption for covered card settlements; payment gateways that do not handle funds are excluded. Exemptions and GST liabilities for R&D services against grants, skilling services by NSDC approved training partners, reverse charge renting to composition taxpayers, electricity transmission/distribution ancillary services, and certain institute services have been prospectively adjusted and historic periods regularized on an 'as is where is' basis. MCD facility management services are taxable; DDA is not a local authority under GST law.
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Provisions expressly mentioned in the judgment/order text.
GST applicability on penal charges clarified: penal charges by regulated entities are not subject to GST; related exemptions regularised.
Penal charges imposed by regulated entities in compliance with RBI directions are not subject to GST. RBI regulated Payment Aggregators performing settlement and handling funds fall within the acquiring bank exemption for covered card settlements; payment gateways that do not handle funds are excluded. Exemptions and GST liabilities for R&D services against grants, skilling services by NSDC approved training partners, reverse charge renting to composition taxpayers, electricity transmission/distribution ancillary services, and certain institute services have been prospectively adjusted and historic periods regularized on an "as is where is" basis. MCD facility management services are taxable; DDA is not a local authority under GST law.
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