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TMI BlogAPGST Act, 2017 - Clarifications regarding applicability of GST on certain servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... ed 16.01.2025 12. G.O.Ms.No.80, Revenue(CT) Department, dated 11.03.2025. 13. Notification No. 07/2025-CT(Rate) dated 16.01.2025. 14. G.O.Ms.No.81, Revenue(CT) Department, dated 11.03.2025. 15. Central Circular No.245/02/2025-GST, dated 28.01.2025 issued by the Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, New Delhi. Based on the recommendations of the GST Council in its 55th meeting held on 21st December 2024, at Jaisalmer, and in exercise of the powers conferred under section 168 (1) of the Andhra Pradesh Goods and Services Tax Act, 2017, clarifications on various issues are being issued through this Circular, as under: 2. Applicability of GST on penal charges being levied by the Regulated Entities (REs) in view of RBI instructions dated 18.08.2023 directing such Regulated Entities (REs) to levy penal charges in place of penal interest. 2.1 Representations have been received seeking clarification on the applicability of GST on penal charges being levied by the Regulated Entities (REs) in view of RBI instructions dated 18.08.2023 directing such Regulated Entities (REs) to levy penal charges in place of pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8, Revenue(CT-II) Department, dated 12.12.2017 to Payment Aggregators (PAs) in relation to settlement of an amount, up to two thousand rupees in a single transaction, transacted through credit card, debit card, charge card or other payment card services. 3.2 The matter has been examined. Payment Aggregators (PAs) are entities that facilitate ecommerce sites and merchants to accept various payment instruments from their customers without the need for the e-commerce sites and merchants to create a separate payment integration system of their own. In the process, PAs receive payments from customers, pool and transfer them on to the merchants within a specified time period. 3.3 The exemption under Sl. No. 34 of G.O.Ms.No.588, Revenue (CT-II) Department, dated 12.12.2017 is available to acquiring banks. For the purpose of the said exemption entry, the term 'acquiring bank' has been explained as under: "acquiring bank" means any banking company, financial institution including nonbanking financial company or any other person, who makes the payment to any person who accepts such card. 3.4 Clause 8 of the RBI's Guidelines on Regulation of Payment Aggregators and Payment Gateways dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other institutions, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961, against consideration in the form of grants. The same has been exempted w.e.f. 10.10.2024 vide G.O.Ms.No.265, Revenue(CT) Department, dated 07.11.2024. 4.2 There were certain interpretational issues with respect to the taxability, or otherwise, of supply of research and development services by Government Entities against grants received from the Government Entities like DRDO, CSIR, SERB etc. These issues now stand resolved, for the period starting from 10.10.2024, with the issuance of G.O.Ms.No.265, Revenue(CT) Department, dated 07.11.2024 which specifically exempted research and development services provided by Government Entities or research associations, universities, colleges or other institutions, notified under clauses (ii) or (iii) of sub-section (1) of section 35 of the Income Tax Act, 1961, against consideration in the form of grants. 4.3 Accordingly, for the past period, the Council, in its 55th meeting, has recommended to regularize payment of GST on the supply of research and development services by Government Entities against grants received from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by Training Partners approved by the National Skill Development Corporation, which were exempt prior to 10.10.2024, is regularized for the period 10.10.2024 to 15.01.2025, on 'as is where is' basis. 6. Regularizing payment of GST on Reverse Charge (RCM) basis on renting of commercial property by unregistered person to a registered person for taxpayers registered under composition levy. 6.1 Based on the recommendations of the 54th GST council held on 09.09.2024, renting of immovable property other than residential dwelling (commercial property) by unregistered person to registered person was brought under reverse charge basis. 6.2 The said recommendation was notified vide G.O.Ms.No.266, Revenue (CT-II) Department, dated 07.11.2024 effective from 10.10.2024 by inserting an entry at Sr. No.5AB of the G.O.Ms.No.256, Revenue (CT-II) Department, dated 29.06.2017 thereby prescribing payment of GST on reverse charge basis on renting of immovable property other than residential dwelling (commercial property) by unregistered person to registered person. 6.3 Various representations from different sectors were received requesting to bring the service of renting of commercial property by ..... 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