GST treatment of cryptocurrencies: barter classification triggers reciprocal invoicing and GST obligations on crypto-funded transactions.
Cryptocurrencies lack legal tender status in India, and under GST a transfer made in exchange for cryptocurrency is treated as a supply and commonly characterised as barter, generating reciprocal invoicing and GST liability. Classification as goods or services determines HSN, tax rate and valuation; valuation generally uses the rupee-denominated transaction value. Exchanges' fees attract GST, business users may require registration and input tax credit depends on use. Income tax applies to gains as business income or capital gains depending on characterization, and promotional airdrops are taxable on use or sale. Legislative clarity is required for consistent treatment and reporting. (AI Summary)

E invoicing mandate: electronic invoices must obtain IRN and QR code and be integrated with GST returns for compliance.
E invoicing requires suppliers of certain taxable outward supplies to generate electronic invoices validated by the Invoice Registration Portal, which issues a unique Invoice Reference Number (IRN) and QR Code that must be printed on and stored with the tax invoice. The regime applies to specified transactions and taxpayers above notified turnover thresholds, exempts listed classes, mandates separate documents for taxable and exempt supplies, integrates B2B e invoice data with GSTR filings, and prescribes cancellation rules, retention periods and penalties for non compliance. (AI Summary)

GST input tax credit utilization limited, requiring a small residual cash discharge for specified high-turnover taxpayers.
A regulatory rule limits the proportion of input tax credit that may be utilized by certain taxpayers and requires a residual cash discharge where the taxpayer's taxable turnover exceeds a prescribed monthly threshold (excluding exempt and zero-rated supplies). The cash-payment obligation is subject to specified exemptions-including income-tax payment history, significant refund claimants, prior cumulative cash discharge, and certain public sector or government entities-and became effective from the first day of January of the stated year. (AI Summary)

Anti profiteering requirement: suppliers must pass GST rate reductions and input tax credit benefits to consumers.
Anti profiteering requires passing on tax rate reductions and input tax credit benefits to recipients through commensurate price reductions. A multi tiered enforcement framework processes complaints via state screening, standing committee review, a safeguards investigation, and national authority adjudication within prescribed timelines. Remedies for confirmed non pass through include directed price reductions, restitution of excess amounts with interest, penalties, cancellation of registration, and, where refunds are impracticable, transfer of proceeds to a consumer welfare fund. Practical issues noted include complex complaint forms and challenges in isolating tax driven price changes from market factors. (AI Summary)