Applicability of entry no 5(e) of schedule II

Yes to remove anomalies ,section 7(1)(d ) earlier the activities constitute supply the activities enumerated in schedule 2 which do not even fall under ambit of supply .

But as per Amendment Act new clause in Sub-section (1A ) inserted , the transaction constitute supply in schedule 2 will be accordance with provision of sub section (1) of Section 7

Notice Pay Recovery may not fall under the definition of supply , but as per Para 5(e) of schedule 2, "Agreeing to the obligation to refrain from an Act ,or to Tolerate an act or situation, or to do act". at the same time if read para 1 of schedule 3 it's not supply (Services by Employees to Employer) but as the Employee has resigned so it no more construe to be as regard to employment . Hence the Tax Officer can demand GST on Notice pay recovery.

Compensation Reced for withdrawing from a tender fall under schedule 2 again " activities of agreeing to the obligation ,to refrain from act " can be constituted as supply , the compensation Reced is treated as consideration so in my view it's an supply & GST is applicable.

Before amendment it was clear now amendment has created confusion.

First it has to be supply and only then we have to proceed towards Sch II.

One school of thought is : 'It is in the course of employment and not in the course of Business. Employees usually join with an intent to continue and not agreeing to pay notice period amount while joining"

However, the said amount is treated as income in the hands of employer araising due to contractual arrangement and definition of supply is inclusive in nature which can help revenue to extend the definition in their support.
Further, in the AAR of Caltech Polymers pvt. ltd, canteen recovery from employees is taken as supply surprisingly.

Therefore, it would be good case to litigate favouring assessess if GST is not paid.