GST Statutory Update for September 2025 Examination

These Question-and-Answer flashcards cover the key statutory amendments, clarifications and new rules in GST law that are applicable for the September 2025 examination, including changes in reverse-charge mechanisms, exemptions, input tax credit, invoicing, e-way bill, interest, and returns.

Which Finance Act’s amendments are applicable for the September 2025 GST examination?

All amendments made by the Finance (No. 2) Act, 2024 that became effective up to 28-02-2025.

Up to what date must notifications and circulars be read for the September 2025 exam?

All notifications and circulars that became effective up to 28-02-2025.

From which date are the new reverse-charge amendments (sponsorship & rent) effective?

16-01-2025.

Under the amended RCM entry for sponsorship services, who pays GST?

The recipient (any body-corporate or partnership firm located in the taxable territory) pays GST under reverse charge.

What is the new reverse-charge category 5AB introduced on 16-01-2025?

Renting of any immovable property (other than residential dwelling) supplied by an unregistered person to a registered person other than a composition taxpayer.

Can the Delhi Development Authority (DDA) be treated as a ‘local authority’ under GST?

No. DDA does not fulfil the definition in section 2(69) of the CGST Act.

What detail must a supplier of online services record on every tax invoice issued to an unregistered recipient?

The name of the State of the recipient (irrespective of the value of supply).

For online services to unregistered persons, what is deemed to be the ‘address on record’?

The recorded name of the recipient’s State.

Accordingly, what is the place of supply for such online services?

The location of the recipient as per section 12(2)(b)(i) of the IGST Act.

Give two examples of online services covered by the proviso to Rule 46(f).

Examples include OTT subscriptions, e-newspaper/e-magazine subscriptions, online telecom services, OIDAR services or online money gaming.

What incidental electricity-related services remain exempt under amended entry 25A?

Services like renting metering equipment, meter testing, releasing connections, shifting meters, issuing duplicate bills, etc. provided by transmission/distribution utilities.

Which organisations’ skill-development services stay exempt after the amendment to entry 69?

NSDC, NCVET, recognised awarding/assessment bodies, accredited training bodies, and NSDC-approved training partners.

What new exemption (entry 36B) was introduced on 16-01-2025?

Insurance services provided by the Motor Vehicle Accident Fund against contributions from insurers for third-party motor insurance.

Define an “insurer” for GST exemption purposes as per the new definition.

An Indian insurance company, a statutory body set up by Parliament, an insurance co-operative society, or a foreign re-insurer’s Indian branch (e.g., Lloyd’s).

Are facility-management services (housekeeping, horticulture, etc.) at MCD HQ exempt under entry 3A?

No, they are taxable because they are not in relation to functions entrusted to a municipality under Article 243W.

In an EX-Works contract between an OEM and an automobile dealer, when can the dealer avail ITC?

When the goods are handed over to the transporter at the OEM’s factory gate (the property passes at that point).

Which statutory provision supports deemed receipt for ITC in EX-Works contracts?

Explanation to section 16(2)(b) of the CGST Act.

Can ITC be retained if goods are later diverted for non-business purposes or lost/stolen?

No. ITC is barred by section 16(1) and section 17(5)(h) in such cases.

Which new GST Rule prescribes the time limit for invoices issued by recipients under RCM?

Rule 47A (effective 01-11-2024).

Under Rule 47A, within how many days must a recipient issue an RCM invoice?

Within 30 days from the date of receipt of the supply.

What key change was made to section 31(3)(f) by the Finance (No. 2) Act, 2024?

It now allows rules to prescribe the time period for RCM invoices issued by the recipient.

Which unregistered persons must obtain a unique enrolment number under amended Rule 138(3)?

(i) Unregistered persons making inter-State transport of handicraft goods, and (ii) any unregistered person who opts to generate an e-way bill.

From what date is the unique enrolment number requirement effective?

11-02-2025.

Which new section added in 2024 influences Rules 88B and 88D?

Section 74A.

What does section 74A provide?

A common limitation period for demands from FY 2024-25 onwards, with higher penalties for cases involving fraud/wilful misstatement/suppression.

When is interest payable under amended Rule 88B for a late-filed return?

On the portion of tax paid in cash from the due date to the actual filing date, unless the cash was already deposited in the e-cash ledger by the due date.

What is the due date for filing Form GSTR-7 under amended Rule 66(1)?

On or before the 10th of the month succeeding the calendar month.

Must a TDS deductor file GSTR-7 even if no tax was deducted that month?

Yes. GSTR-7 is mandatory for every calendar month.

If ITC excess reported in GSTR-3B is not resolved, which sections may be invoked after amendment to Rule 88D(3)?

Sections 73, 74, or 74A.

What triggers a system-generated intimation under Rule 88D?

Excess ITC availed in GSTR-3B compared to GSTR-2B above a prescribed threshold.

What is the common effective date for Rule 47A, amended Rule 88B, Rule 66, and Rule 88D changes?

01-11-2024.

Which notifications introduced the RCM changes for sponsorship and immovable-property rent?

Notification 07/2025-CT(R) and 07/2025-IT(R), both dated 16-01-2025.

Which notifications inserted new exemptions including entry 36B?

Notification 06/2025-CT(R) and 06/2025-IT(R), both dated 16-01-2025.

Under reverse-charge entry 5AB, which category of recipient is specifically excluded?

A registered person who has opted for the composition levy.