E- Invoice for B2G supplies

[Priyesh Mamnani]

A registered person supplying goods to the local authority, government entity, municipal corporations

Whether e-invoice applicable for such Business to Government (B2G) supplies? Is there any legal provision for this in GST law?

[KASTURI SETHI]

E-invoice system is required for B-to-B with some exemptions mentioned in Notification No.13/2020-CT dated 21.3.20 as amended vide Notification Nos. 61/2020-C.T. dated 30-07-2020,70/2020-C.T. dated 30-09-2020, 88/2020-C.T. dated 10-11-2020, 5/2021-C.T. dated 08-03-2021, 23/2021-C.T. dated 01-06-2021, 1/2022-C.T. dated 24-02-2022 an 17/2022-C.T. dated 01-08-2022 read with Rules mentioned in the notification.

No e-invoice for supplies by registered person to unregistered i.e. B-to-C is required. You are talking about B-to-G. If 'G' is registered unit as recipient, no exemption from e-invoice is available to the registered person (supplier). If G is unregistered, then exemption from e-invoice is available to the registered person (supplier).

E-invoice is not required by Govt. department, local authority etc. as registered person (supplier) vide Notification No.13/20-CT dated as amended but no exemption is available as recipient (unregistered person/consumer).

[Padmanathan KV]

Fully agreed with Ld. Kasturi sir. There is no concept of B2G under GST. The applicability of e-invoice will depend on whether recipient is registered or not.

[Amit Agrawal]

I concur with my professional colleague.

And majority (if not all) of these Govt. recipients are now registered under GST due to requirements of Section 51 read with Section 24 (vi) of the CGST Act, 2017 (or even as supplier).

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

[Lav Prajapati]

The registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, are required to issue e-invoicesunder rule 48(4) of CGST Rules. for the supplies made to Government Departments or establishments / Government agencies / local authorities / PSUs, etc., registered solely for the purpose of TDS.

[Amit Agrawal]

In continuation to subject matter under discussion here & my post at serial No. 3 above, please note the following recommendations of 50th meeting of GST Council, as per press release dated 11.07.2023:

"8. Issuance of the following circulars in order to remove ambiguity and legal disputes on various issues, thus benefiting taxpayers at large:

1. Clarifying that the registered person, whose turnover exceeds the prescribed threshold for generation of e-invoicing, are required to issue e-invoices under rule 48(4) of CGST Rules. for the supplies made to Government Departments or establishments / Government agencies / local authorities / PSUs, etc., registeredsolely for the purpose of TDS,
2. ...........
3. ..............................

Note (as given at the end of above-said Press Release): The recommendations of the GST Council have been presented in this release containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law."

These are ex facie views of mine and the same should not be construed as professional advice / suggestion.

AI Summary

E-invoice applicability depends on recipient registration; registered government recipients require e-invoices when the supplier meets the invoicing threshold. E-invoice issuance depends on the recipient's registration: if the government recipient is registered, suppliers exceeding the prescribed turnover threshold under the CGST e-invoicing framework must issue e-invoices; if the government recipient is unregistered, the supplier is exempt from e-invoicing. Notifications may exempt government entities when they act as suppliers, but that exemption does not affect supplier obligations where the recipient is registered.