This circular provides detailed clarifications on GST applicability across multiple service sectors following the 55th GST Council meeting held on 21st December 2024 at Jaisalmer.

It clarifies that no GST is payable on penal charges levied by banks and NBFCs in compliance with RBI’s directions dated 18.08.2023, as such charges are not consideration for tolerating an act. It also confirms that Payment Aggregators (PAs) regulated by RBI qualify as “acquiring banks” and are eligible for exemption on small-value card transactions up to ₹2,000 under Notification No. 12/2017–CTR.

Further, GST payment is regularized on an ‘as is where is’ basis for:

• Research and development services by government entities (01.07.2017–09.10.2024);
• Skilling services by NSDC-approved training partners (10.10.2024–15.01.2025);
• Renting of commercial property by unregistered persons to composition taxpayers (10.10.2024–15.01.2025);
• Support services related to electricity transmission/distribution (10.10.2024–15.01.2025); and
• Language and cultural training by Goethe Institutes/Max Mueller Bhawans (01.07.2017–31.03.2023).

Additionally, it clarifies that GST applies on facility management services to MCD, and that DDA is not a local authority under Section 2(69) of the CGST Act