E-invoicing Applicability

[Ethirajan Parthasarathy]

Going by 'Aggregate Turnover' criteria, petroleum outlets will be covered under 'E-invoicing'. For them only oil is liable for GST but in most of the cases oil is sold only to consumers. But diesel could be sold B2B who will be using diesel for their generators, machines etc.,

In such s situation, whether petroleum outlets are liable to comply with E-Invoicing Rules.

[KASTURI SETHI]

Yes but subject to aggregate turnover criteria.

[ABHISHEK TRIPATHI]

Dear KS Sir,

The definition of AT has four AV/ingredients (i) taxable supply, (ii) exempt supply (iii) exports of goods or services or both and, (iv) inter-State supplies of persons having the same Permanent Account Number. Under what category Diesel will fall? It won’t fall under (iii) and (iv). It’s not leviable to tax yet, because S. 9(2) says it will be leviable from such date as notified (Even (i) isn't applicable). So, diesel falls under exempt supply r/w non-taxable supply? Holy Moly.

Relevant definitions as follows:

S. 2 (6) ―aggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

(108) ―taxable supply- means a supply of goods or services or both which is leviable to tax under this Act;

S. 2(47) ―exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply;

S. 2(78) ―non-taxable supply means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act;

S. 9 Levy and collection.- (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.

(2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.

[KASTURI SETHI]

Sh.Abhishek Tirpathi Ji, Thanks for your views. Sir, I shall re-examine and revert.

[Ethirajan Parthasarathy]

Dear Mr.Abhisek,

As you rightly pointed out, the definition of "Aggregate Turnover" includes the exempted supply. The definition of "Exempted Supply" in turn includes "non-taxable supplies". My understanding is sale of diesel is non taxable supplies and hence, is to be considered to arrive at aggregate turnover

[KASTURI SETHI]

Sh.Ethirajan Parthasarathy Ji,

Sir, I agree with you in toto. You have explained very well. So now there is need of my clarification/intervention.

[KASTURI SETHI]

Pl. read, "There is NO need of my clarification/intervention".

AI Summary

E-invoicing Rules for Petroleum Outlets: Diesel Sales Classified as Non-Taxable, Impacting Aggregate Turnover Compliance A discussion on the applicability of e-invoicing for petroleum outlets under GST was initiated, focusing on whether diesel sales, primarily B2B, are subject to these rules. It was concluded that compliance depends on the aggregate turnover criteria. Participants debated whether diesel falls under taxable or exempt supply, with one party asserting that diesel sales should be considered non-taxable supplies, thus contributing to aggregate turnover. The conversation clarified that diesel sales are included in the aggregate turnover due to their classification as non-taxable supplies, confirming the need for compliance with e-invoicing rules based on turnover.