The GST Council has examined the issue in respect of applicability of e-invoice under rule 48(4) of Central Goods and Services Tax 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 registered solely for the purpose of deduction of tax at source (TDS) as per provisions of section 51 of the Central Goods and Services Tax Act, 2017. This issue has been clarified through the Circular No. 198/10/2023-GST dated 17th July 2017.
To know more, read in detail about the circular below:
Issue : | 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
- As per section 24(vi) of the CGST Act, 2017, Government departments which are solely registered for the purpose of deduction of tax at source are compulsorily liable for registration, and
- They are considered to be registered persons as per clause (94) of section 2 of CGST Act, 2017.
- As per rule 48(4) of CGST Rules, 2017, 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.