GST circular working note

Circular 245/02/2025-GST: Clarifications regarding applicability of GST on certain services

Source-led decode of CBIC Circular 245/02/2025-GST with the actual provisions, rules, forms and official PDF trail.

Reviewed by CA Nikhil Gupta · Updated 5 October 2026

Filing identity

Circular number

245/02/2025-GST

Date

2025-01-28

CBIC record

1003261

PDF source

official text PDF; 8 page(s)

Download Circular 245/02/2025-GST PDF

Form in 2 minutes

Circular 245/02/2025-GST deals with clarifications regarding applicability of GST on certain services. Read it as a rate, classification and taxability mapping: identify the supply, supplier, recipient, tariff or service description, notification entry and event date before applying the circular. The circular is binding administrative clarification under the GST framework only to the extent of the issue it answers; the Act, Rules, notifications and event-date version still control the final legal result.

Working point: On the issue of clarifications regarding applicability of GST on certain services, a practitioner should match the product or service facts to the circular's described entry instead of extending the answer to nearby supplies by label alone.

Bare law, rules and notifications

Sections extracted

Section 168(1)
Section 35
Section 2(69)

Rules extracted

No CGST Rule number was expressly extracted from Circular 245/02/2025-GST.

Forms extracted

No GST form was expressly extracted from Circular 245/02/2025-GST.

Notifications and linked circulars

Notification No. 12/2017-CT
Notification No. 08/2024-CT
Notification No. 06/2025-CT
Notification No. 13/2017-CT
Notification No. 09/2024-CT
Notification No. 07/2025-CT
Notification No. 6/2025-CT
Circular No. 178/10/2022-GST

The source map above is limited to citations actually extracted from the official Circular 245/02/2025-GST PDF. Where the transaction also touches another charging section, exemption entry, return rule or limitation provision, document that separate source before filing or advising.

Paragraph-wise decode

Para	Issue dealt with in the circular
2.3	It is being viewed by certain field formations that penal charges so levied are in the nature of payment/consideration for tolerating an act or situation. Similar issues were examined in Circular No. 178/10/2022-GST dated 03.08.2022, wherein it has already been clarified that certain payments such as liquidated damages for breach of contract are not a consideration for tolerating an act or situation . They are rather amounts...
3	Whether GST exemption under Sl. No. 34 of notification No. 12/2017- CTR dated 28.06.2017 is available to payment aggregators 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? 3.1 Representations have been received seeking clarity on the applicability of GST exemption under Sl. No. 34 of...
3.2	The matter has been examined. Payment Aggregators (PAs) are entities that facilitate e - commerce sites and merchants to accept various payment instruments from the ir 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...
3.5	Further, the RBI’s Guidelines dated 17.03.2020 clearly distinguish between Payment Aggregators and Payment Gateways (PGs), keeping in view their role vis -à-vis handling funds. PAs are defined as entities who receive payments from customers, pool and transfer them on to the merchants within a specified time period. On the other hand, PGs are defined as entities that provide technology infrastructure to route and facilitate...
4.1	The GST Council, in its 54 th meeting held on 09.09.2024 recommended exempting 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. The same has been exempted w.e.f. 10.10.2024 vide notification No...

Use these paragraph cues to locate the operative part quickly, then read the full official PDF for conditions, exceptions, examples, effective dates and past-period regularisation language.

Workflow

Identify issue.
Record the taxpayer, supply, return period, order or refund event covered by Circular 245/02/2025-GST.
Map source.
Open the circular PDF with the Act, Rule and notification entries listed above.
Compile proof.
Contract, invoice description, product literature, HSN/SAC support, rate notification, exemption condition and tax-position memo.
Close filing.
Use the portal or officer channel that matches the event date and keep the acknowledgement with the source PDF.

Forms and downloadable source

Circular 245/02/2025-GST does not prescribe a separate static form PDF in its extracted source text. The operative document for this page is the circular PDF and the applicable Act, Rule, notification or portal process.

Do not use a form title by memory alone. Confirm the live portal, the rule that prescribes the form, historical return period and any officer instruction before upload or reply.

Highlighted advisory points

Scope

Circular 245/02/2025-GST should be confined to clarifications regarding applicability of GST on certain services; nearby issues require their own source check.

Evidence

Keep the official PDF, transaction documents and portal record together so a reviewer can reproduce the conclusion.

Version

For historical periods, use the law and portal version applicable to the event, not merely the current screen label.

Exam and advisory case study

For exams and opinions, write the classification path: facts, statutory entry, notification condition, circular clarification, past-period treatment and practical billing result. For Circular 245/02/2025-GST, a complete answer names the issue, lists the controlling provisions extracted above, applies the circular's operative answer, and then states what the taxpayer or officer must do in the return, refund, appeal, billing or record file.

Finin2min summary and Q&A

Summary: Circular 245/02/2025-GST is a source-specific GST clarification on clarifications regarding applicability of GST on certain services. Use the exact official PDF, not a generic circular checklist, and preserve the law/rule/notification map with the working file.

Is the circular itself the full law?

No. It clarifies administration under GST. The Act, Rules, notifications, court orders and facts of the transaction remain necessary.

When is a form PDF needed?

Only when the circular or linked rule actually points to a prescribed form. If the page lists forms, use the form compendium and the current GST portal version.

Can this be applied to another tax period?

Only after checking the effective date, amendment history and any past-period regularisation language in the official circular and related notification.

Primary official sources

CBIC circular metadata | Official CBIC PDF viewer | CBIC circular list | GST Council circulars

This Finin2min page is an educational working note. Official legislation, Gazette instruments, circulars, portal rules, court decisions and the facts of the matter prevail. Obtain professional advice for a live filing, refund, appeal or dispute.