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<\/i> GST <\/a> Circular 245: Key GST Exemptions and Clarifications on Penal Charges <\/h1> <\/div>
Important clarification about the GST applicability of fines levied by banks and NBFCs for loan breaches is provided by Circular 245. In the past, it was unclear if punitive costs like late payment fines were subject to GST. The circular affirms that these fines are free from GST as they are a result of contract violations rather than a compensation for services. This clarification ensures equitable and transparent taxes in financial transactions by lowering the tax burden on borrowers and financial institutions. <\/p>
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<\/div> Krishna Gopal Varshney <\/a>
An editor at Myitronline<\/p> <\/div>

Jan 30, 2025<\/li>
5 min read<\/li>
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Important clarification about the GST applicability of fines levied by banks and NBFCs for loan breaches is provided by Circular 245. In the past, it was unclear if punitive costs like late payment fines were subject to GST. The circular affirms that these fines are free from GST as they are a result of contract violations rather than a compensation for services. This clarification ensures equitable and transparent taxes in financial transactions by lowering the tax burden on borrowers and financial institutions.

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Krishna Gopal Varshney <\/a><\/h4> An editor at Myitronlinenews<\/small> <\/div> View Articles<\/a> <\/div>
Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business\/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates. <\/p> <\/div> <\/div>

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