The Government of Gujarat on March 05, 2025, issued clarifications regarding the applicability of GST on certain services.
The following has been stated: -
•The GST Council's 55th meeting recommended clarifications on various GST matters. Penal charges levied by regulated entities (REs) for loan non-compliance are considered charges for breach of contract and are not subject to GST.
•The GST on reverse charge for renting commercial property by unregistered to registered persons under composition levy is regularized for October 10, 2024, to January 15, 2025.
•Incidental services related to electricity distribution are also exempted from GST, and Goethe Institutes/Max Mueller Bhawans' GST payments from July 01, 2017, to March 31, 2023, are regularized.
[Circular No. 245/02/2025-GST]
