Circular No. 198/10/2023-GST [C10-6QT]

Representations have been received seeking clarification with respect to applicability of e-invoice under rule 48(4) of Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”) 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 Central Goods and Services Tax Act, 2017 (hereinafter referred to as “CGST Act”).

2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, hereby clarifies the issue as under:

S. No. Issue Clarification

1. Whether e-invoicing is Government Departments or establishments/ applicable for supplies made by Government agencies/ local authorities/ PSUs, a registered person, whose which are required to deduct tax at source as per turnover exceeds the prescribed provisions of section 51 of the CGST/SGST Act, threshold for generation of e- are liable for compulsory registration in invoicing, to Government accordance with section 24(vi) of the CGST Act. Departments or establishments/ Therefore, Government Departments or Government agencies/ local establishments/ Government agencies/ local authorities/ PSUs which are authorities/ PSUs, registered solely for the registered solely for the purpose purpose of deduction of tax at source as per of deduction of tax at source as provisions of section 51 of the CGST Act, are to

per provisions of section 51 of be treated as registered persons under the GST the CGST Act? law as per provisions of clause (94) of section 2 of 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.

3. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

4. Difficulty, if any, in implementation of this Circular may please be brought to the notice of the Board. Hindi version would follow.