Recently, an important clarification was issued regarding the applicability of GST on certain charges. The Maharashtra Authority for Advance Rulings (AAR) has ruled that penalties, late fees, and fines levied by the Reserve Bank of India (RBI) do not fall under the purview of GST. This ruling comes after significant debate and confusion regarding the classification of such charges under GST laws. For guidance on GST compliance services in Delhi, be sure to refer to our blog. What Does This Mean? In cases involving the RBI, penalties are typically imposed for rule breaches or violations of contractual agreements. The key…