CBIC Issues GST Clarifications on Penal Charges, Payment Aggregators, Research Grants, and More

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 245/02/2025-GST, clarifying GST applicability on various services following the 55th GST Council meeting.

Key highlights include no GST on penal charges levied by banks per RBI guidelines, GST exemption for RBI-regulated payment aggregators handling transactions up to ₹2,000, and regularization of GST on research and skill development services.

The circular also confirms GST applicability on facility management for MCD, excludes DDA from the "local authority" category, and regularizes GST on services by Goethe Institute/Max Mueller Bhawans.

These updates streamline compliance and taxation clarity.