GST CIRCULAR NO. 125/44/2019 RESCINDED BY CBIC

CBIC has rescinded GST circular no. 125/44/2019

The circular pertained to the applicability of GST on additional/penal interest

The circular was issued in November 2019

It had clarified that GST would be applicable on additional/penal interest charged by banks and NBFCs

The circular had faced criticism from the industry

The rescinding of the circular is expected to provide relief to banks and NBFCs

The move is in line with the government's efforts to ease compliance burden and improve ease of doing business