E - Invoicing and Agreegate Turnover

[Kaustubh Karandikar]

From 01.10.2022, if the aggregate turnover is more than Rs.10 Crores, E – Invoicing is compulsory. In case of Custom House Agents, they pay Customs duty on behalf of their client and recover the same subsequently at actuals but not charging GST on the same. While calculating Rs.10 Crore turnover, whether the value of such customs duty recovered from client is required to be considered?

AI Summary

Customs Duty Recovered by Agents Not Included in Rs.10 Crore Turnover for E-Invoicing Under GST, Clarifies Respondents A query was raised regarding the inclusion of customs duty recovered by Custom House Agents in calculating the Rs.10 Crore turnover threshold for mandatory e-invoicing under GST, effective from October 1, 2022. Respondents clarified that, according to the CGST Act, taxes and duties collected, except for CGST, SGST, or UTGST, should be included in the value of supply. However, the consensus among the replies was that customs duty recovered is a reimbursement and not part of the service provided, thus it should not be included in the turnover calculation.