GST
The Central Board of Indirect Taxes and Customs (CBIC) has said that the Goods and Services Tax (GST) will not apply to the imposing penalty charge of banks and non-banking financial companies (NBFC). That is, there will be no GST. The Central Indirect Taxes and Customs Board (CBIC) also made it clear through a circular that GST will not be imposed on the transaction of up to Rs 2,000 with the help of agargeators on the online stage.
Explaining the issue of implementation of GST for banks and NBFC imposing punitive fees, CBIC said that the punitive fees of the institutions that RBI regulate are imposed on violation of the terms of the contract, and hence GST is not implemented to them. will be. The CBIC said, “According to the recommendation of the 55th GST Council, it is clarified that no GST is payable on the punitive fee levied by regulated institutions for not complying with the physical conditions of the borrower.” Rajat Mohan, senior partner of Associates, said that this explanation is important, as it will settle the interpretation disputes.
Payment aggregators (PAs) are institutions that allow e-commerce sites and traders to accept various payment means from their customers. The need to create an e-commerce sites and traders to create their own separate payment aggregator system. In this process, PA receives payment from customers, pool them and transfer to traders within the specified time period. CBIC also cited the guidelines of RBI, which distinguish between PA and Payment Gateway, which without any involvement in fund operation without any kind of participation in the funding transaction transactions to route and convenient technology basic Provide structure.
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