(a) Happy Constructions Ltd., a registered builder under GST in Bengaluru, Karnataka has got permission to build five floors from the Municipal…

(a) Agreeing to obligation to refrain from an act, or to tolerate an act or situation, or to do an act has been specifically declared to be a supply of service vide para 5 (e) of Schedule II of the CGST Act, 2017 if the same constitutes a supply as per the CGST Act, 2017. In the given case, Happy Constructions Limited has agreed to build only three floors, even though it is permitted to construct five floors by the Municipal Authorities, for a compensation of 20lakh. This results in supply of service. The conditions to be complied with for the above supply will be (a) There must be an expressed or implied agreement or contract must exist. (b) Consideration must flow in return to this contract/ agreement. Since Aditya Constructions is not ready to pay any further amount to Happy Constructions Limited in addition to the amount already agreed, the amount received 20lakh shall be treated as inclusive of GST and the GST payable will be - 20,00,000 x 9/118 = 1,52,542.37 or - 1,52,542 (rounded off) as CGST and SGST each. (b) E-invoicing has been made mandatory for all registered businesses (except specified class of persons) with an aggregate turnover in any preceding financial year from 2017-18 onwards greater than 5crore in respect of B2B supplies (supply of goods or services or both to a registered person) or for exports. Hence, it is mandatory for M/s Mangal & Co. to issue e-invoices. Following entities are exempt from the mandatory requirement of e-invoicing: Special Economic Zone unitsInsurer or banking company or financial institution including NBFCGTA supplying services in relation to transportation of goods by road in a goods carriageSupplier of passenger transportation servicePerson supplying services by way of admission to exhibition of cinematograph films in multiplex screensGovernment Department and a local authority Further, the above taxpayers exempted from the mandatory requirement of e-invoicing are required to provide a declaration on the tax invoice stating that though their aggregate turnover exceeds the notified aggregate turnover for e-invoicing, they are not required to prepare an e-invoice. Thus, above mentioned entities are not required to issue e-invoices even if their turnover exceeds 5crore in the preceding financial year from 2017-18 onwards but are required to provide a declaration as discussed above.