Clarification on e-invoicing for supplies made to Government Departments
Representations have been received seeking clarification with respect to applicability of e-invoice under rule 48(4) of CGST Rules, 2017 w.r.t. supplies made by a registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, to Government Departments or establishments/ Government agencies/ local authorities/ PSUs registered solely for the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act, 2017.
The CBIC issued Circular No. 198/10/2023-GST dated July 17th 2023 to issue a clarification on this issue as under:
Whether e-invoicing is applicable for supplies made by a registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, to Government Departments or establishments/ Government agencies local authorities/ PSUs which are registered solely for the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act?
Clarification:
- Government Departments or establishments/ Government agencies/ local authorities/ PSUs which are required to deduct tax at source as per provisions of section 51 of the CGST/SGST Act, are liable for compulsory registration in accordance with section 24(vi) of the CGST Act.
- Therefore, the Government Departments or establishments/ Government agencies/ local authorities/ PSUs, registered solely for the purpose of deduction of tax at source as per provisions of section 51 of the CGST Act, are to be treated as registered persons under the GST law as per provisions of clause (94) of section 2 of the CGST Act.
- Accordingly, the registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, is required to issue e-invoices for the supplies made to such Government Departments or establishments/ Government agencies/ local authorities/ PSUs etc. under rule 48(4) of CGST Rules.
Disclaimer: This article is meant merely for educational purposes of the users. The article does not carry any corroborative value. Readers are advised to consult with an expert before applying the information contained in this article. Taxwink is not responsible for any loss or damage caused to any person due to use of any information contained in this article. For “User Support” please mail at: support@taxwink.com
