GST Council Notes: A Plain-English Guide to the Latest Classification Circulars.

The GST Council has issued a set of classification circulars that clarify treatment of composite supplies, works contract services and certain real-estate-related supplies. This note translates the circulars into practical invoicing and compliance steps.

Invoicing and documentation

Review whether existing invoice templates correctly reflect the principal supply where bundled services are invoiced together.

Ensure supporting contracts and work orders align with the classification position taken on returns to reduce dispute risk in departmental audits.

ITC and audit defence

Map eligible credits against the revised classification tables and identify any credits that may need reversal or reclassification in the next filing period.

Maintain a short memo documenting the basis for classification decisions — this is often decisive in appellate proceedings.