Clarification on issue pertaining to e-invoice. - GST - States - Circular No. 198/10-HGST/2023/GST-II

HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Circulars (Haryana) Circular No. 198/10-HGST/2023/GST-II, dated the July 24, 2023. (File No. 525/GST-II) Subject : Clarification on issue pertaining to e-invoice. The Circular seeks to provide clarification with respect to applicability of e-invoice under rule 48(4) of the Haryana Goods and Services Tax Rules, 2017 (hereinafter referred to as the HGST 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 Haryana Goods and Services Tax Act, 2017 (hereinafter referred to as the HGST 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 Commissioner of State Tax, in exercise of its powers conferred by section 168 of the HGST Act, hereby clarifies the issue as under : Sl. 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 HGST 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/SGST Act, are liable for compulsory registration in accordance with section 24(vi) of the HGST 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 HGST Act, are to be treated as registered persons under the GST law as per provisions of clause (94) of section 2 of the HGST 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 the HGST Rules. 3. Difficulty, if any, in implementation of this circular may please be brought to the notice of the Department. Commissioner of State Tax, Haryana.