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GST Service Entry

B3-R20 - Government fines, penalties and tolerating non-performance

Controlled GST service-rate entry for Government fines, penalties and tolerating non-performance.

Legal cut-off: 19 July 2026Robots: noindex,followAuthors: CA Nikhil Gupta and Kajri Singh
Source status: C_CONTEXT_OR_HISTORICAL / CONTEXT_REVIEW
FieldControlled entry
CardB3-R20
SAC9991 / 9997
ServiceGovernment fines, penalties and tolerating non-performance
Sector
CGST componentNil only for specified government-contract entry
Indicative combined GSTNil only for specified government-contract entry
Effective datePrincipal exemption baseline
LiabilityExempt where complete current entry applies
ConditionSpecified government/local-authority service of tolerating contractual non-performance against fines/liquidated damages.
Official sourcegstcouncil.gov.in

Professional alert

Private contractual damages and independent supplies require separate analysis.

Five-layer service test

  1. Classify the actual activity and SAC.
  2. Apply the complete current 11/2017 rate serial.
  3. Test the complete 12/2017 exemption entry.
  4. Determine supplier, recipient, RCM or ECO liability under 13/2017 and 17/2017.
  5. Apply valuation, place of supply, ITC conditions and effective date.

Evidence

Finin2min Q&A

Does a serial number alone establish the GST rate?

No. The tariff reference, complete description, exclusions, conditions, amendment history and transaction date must all match.

Can an Integrated Tax entry be copied into a Central Tax conclusion?

The counterpart architecture is ordinarily aligned, but the exact Central Tax and applicable State or Union Territory instrument must still be verified.

What does source-gated mean?

The route and serial are controlled, but the exact signed current entry or complete amendment chain has not yet passed the release gate.

Can a portal rate finder replace the Gazette?

No. It is a discovery aid. The Gazette notification and binding law remain controlling.