NIC Clarifies E-Invoice Issue
Clarification on E-Invoicing for Government Transactions:
1. Registration Requirement:
- Various government-related agencies (like Government Departments, Agencies, PSUs, etc.) need to register under the CGST Act.
- They must also deduct TDS (Tax Deducted at Source) as per Section 51 of the CGST Act.
2. Definition of Government Department:
- Includes Government Agencies, local authorities, Public Sector Undertakings (PSUs), Establishments under the Government, Departments under the Government.
3. E-Invoicing Mandate:
- Rule 48(4) makes it mandatory for registered entities crossing a specific turnover to issue e-invoices.
- This rule also applies to transactions with Government Departments or Agencies, PSUs, etc.
4. GSTIN Inclusion:
- Suppliers generating e-invoices (B2B) for government supplies should include the GSTIN of these Government Departments in the invoice.
5. Transparency and Compliance:
- These procedures ensure transparency and compliance with GST laws in dealings with the Government and its agencies.
- It aligns with government guidelines and aims for adherence to GST law.
6. Compliance Request:
- Taxpayers are urged to follow these guidelines.
- If they face any difficulties, they should inform the authorities.
In essence, this clarification outlines the need for government-related entities to register, issue e-invoices for their transactions, include GSTIN details, all in line with GST laws to ensure transparency and compliance in dealings with the government.
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