Clarification on issue pertaining to e-invoice. - GST - States - GST-11/2023

Government of Karnataka (Department of Commercial Taxes) No. KSA/GST.CR-05/2019-20 (Vol-IV) Office of the Commissioner of Commercial Taxes Vanijya Therige Karyalaya, Gandhinagar, Bengaluru-560009, Dated: 21-07-2023 COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. GST-11/2023 Subject: Clarification on issue pertaining to e-invoice. Representations have been received seeking clarification with respect to applicability of e-invoice under rule 48(4) of Karnataka Goods and Services Tax Rules, 2017 (hereinafter referred to as KGST 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 Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as KGST 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 KGST Act, hereby clarifies the issue as under: S. No. Issue Clarification 1. 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 KGST Act? 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/KGST Act, are liable for compulsory registration in accordance with section 24(vi) of the KGST Act. Therefore, 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 KGST Act, are to be treated as registered persons under the GST law as per provisions of clause (94) of section 2 of KGST Act. Accordingly, the registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, is required to issue envoices for the supplies made to such Government Departments or establishments/ Government agencies/ local authorities/ PSUs, etc under rule 48(4) of KGST Rules 3. Difficulties, if any, in implementation of this circular may be brought to the notice of this office. (C SHIKHA) Commissioner of Commercial Taxes (Karnataka) Bengaluru