<h1>Government Expands Taxable Services for Businesses, Exempts Certain Public and Small-Value Services; Clarifies Compliance for Small Businesses.</h1> As of April 1, 2016, all services provided by the government or local authorities to business entities are taxable, expanding from the previous limitation to support services. A circular issued on April 13, 2016, clarifies these changes, exempting services provided to other governmental bodies, services under Rs. 5,000, and certain statutory services like passport issuance. Taxes, fines, and penalties remain non-taxable. Services related to natural resources for agriculture, municipal functions, and Panchayat activities are also exempt. The circular aims to alleviate compliance burdens for small businesses and clarifies that payments for services are taxable, regardless of statutory requirements.