The National Informatics Centre under the Ministry of Electronics and Information Technology (MeiTY) has issued clarification on Goods and Services Tax (GST) e-Invoicing for Government Supplies on 14th September 2023.
The GST Policy Wing has released a clarification regarding the implementation of e-invoicing for transactions with Government departments or agencies, as outlined in Circular No. 198/10/2023-GST dated July 17, 2023.
Government departments, institutions, government agencies, local authorities, and public sector undertakings (PSUs) mandated to deduct tax at source under Section 51 of the Central GST/State GST Act are obligated to undergo mandatory registration under section 24(vi) of the CGST Act, 2017.
Consequently, entities belonging to the categories mentioned above, which obtain registration exclusively for the purpose of tax deduction at source in accordance with section 51 of the CGST Act, are to be considered as registered entities under the GST law, as stipulated by 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.
It is advised that the taxpayers, notified for generation of e-invoices and supplying goods or services to government departments / agencies, need to generate B2B e-Invoices with the GSTIN of the Government department / agency.
Recently, the Goods and Services Tax Network (GSTN) issued an advisory on E-Invoice glossary and steps for e-invoicing for the taxpayers reference on 18th August 2023.
Read More: Important update: GSTN issues Advisory on E-Invoice Glossary and Steps for Guiding Taxpayers
Also, the GST e-invoice system has updated that the two-factor authentication is mandatory for all the taxpayers with the Annual Aggregate Turnover (AATO) above Rs. 20 crores with effect from November 1st, 2023.
The Central Board of Indirect Taxes and Customs (CBIC) vide notification No. 32/2023 – Central Tax issued on 31st July 2023 has announced that the taxpayers with an Aggregate Annual Turnover (AATO) of up to 2 crore are now exempted from filing the Annual Turnover (GSTR-9) for the Financial Year 2022-23.
Read More: CBIC notifies Exemption of Taxpayers having AATO up to 2cr from Filing Form GSTR-9 in F.Y. 2022-23
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