GST -Important points to note

(1) GST compensation cess

GST compensation cess was levied for a period of 5 years up to 30th June, 2022. However ,its levy and collection has been extended till 31st March,2026

(2) Schedule III – Negative list

Services by an employee to the employer in the course of or in relation to his employment.

(services provided outside the ambit of employment for a consideration would qualify as supply)

Circular-perquisites provided in terms of contractual agreement to employee-not liable to GST

(3) RCM- Sec.9(3)-Notification no 13/2017

Supply of services by GTA(Goods Transport Agency)in respect of transportation of goods by road (who has not paid CGST-6%)

Removed the sentence- ‘who has not paid CGST-6%’.

(4)Postal service

Taxable postal service(speed post, express parcel post , agency service, life insurance)—now removed the word ‘taxable’ i.e. all services provided by the post office is forward charge mechanism.

(5) RCM

Newly added—  Services by way of renting of residential dwelling to a registered person – any registered person is liable to pay GST under RCM

(6) Issuance of credit note

 sec 34(2)—Any registered person who issues a credit note in relation to supply of goods/services/both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than

*30th day of November following the end of the FY in which such supply was made OR * the date of furnishing of the relevant annual return ,which ever is earlier .

(7) E-invoice

Class of persons notified to mandatorily issue e-invoice

*Every registered person whose aggregate turnover (taxable supply+ exempted supply+ export) based on PAN in any preceding FY from 2017-18 onwards, is more than prescribed limit (Rs. 5 crore or more from 1st august 2023) e-invoicing is mandatory.

(8) Exemption from e-invoicing

Entities are exempt from the mandatory requirement of e-invoicing

 GOVT department or Local Authority

(9) Dynamic QR code— Tax invoice shall have Quick Response (QR) code. So All B2C [including UIN Holders] invoice issued by a registered person whose aggregate TO in any preceding FY from 2017-18 onwards exceeds 500 cr.

(10) OIDAR services

Notification No.28/2023 published on 31st July 2023

*The Finance Act 2023 removed the terms “minimal human intervention” and “essentially automated” from the definition of OIDAR services.

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