The Ministry of Finance (MoF) on January 28, 2025, issued clarifications regarding the applicability of GST on certain services.
The following has been stated: -
•The GST Council, in its 55th meeting, clarified several issues regarding GST applicability, including the non-applicability of GST on penal charges levied by regulated entities (REs) for non-compliance with loan terms.
•It also reinstated GST exemptions for payment aggregators, skilling services by NSDC-approved partners, and certain research and development services provided by government entities. Additionally, GST on facility management services provided to MCD and commercial property rentals by unregistered persons to registered persons was clarified.
•Furthermore, the payment of GST for services by Goethe Institutes from 2017 to 2023 was regularized.
The detailed circular is given in the document below.
[Circular No. 245/02/2025-GST]
