Clarification on issue pertaining to e-invoice - GST - States - 10/2023-GST of State Tax

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE TAXES VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002 (POLICY BRANCH) Circular No. 10/2023-GST of State Tax, dated August 16, 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 Delhi Goods and Services Tax Rules, 2017 (hereinafter referred to as DGST 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 Delhi Goods and Services Tax Act, 2017 (hereinafter referred to as DGST 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, in exercise of its powers conferred by section 168 of the DGST 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 DGST 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 DGST/SGST Act, are liable for compulsory registration in accordance with section 24(vi) of the DGST 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 DGST Act, are to be treated as registered persons under the GST law as per provisions of clause (94) of section 2 of the DGST 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 DGST Rules. 3. Difficulties if any, in implementation of this circular may please be brought to the notice of this Pr. Commissioner, Trade and Tax. Pr. Commissioner (State Tax)