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Circular No. 198/10/2023-GST
F. No. CBIC-20001/5/2023-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
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New Delhi, Dated the 17
th
July, 2023
To,
The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)

Madam/Sir,

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 Central Goods and Services Tax Rules, 2017 (hereinafter
referred to as “CGST 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 Central Goods and Services
Tax Act, 2017 (hereinafter referred to as “CGST 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 Board, in exercise of its powers conferred by
section 168 (1) of the CGST Act, hereby clarifies the issue as under:

S. 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
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 CGST 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 CGST Act, are to

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per provisions of section 51 of
the CGST Act?

be treated as registered persons under the GST
law as per provisions of clause (94) of section 2
of CGST 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 CGST
Rules.

3. It is requested that suitable trade notices may be issued to publicize the contents of this
Circular.

4. Difficulty, if any, in implementation of this Circular may please be brought to the notice
of the Board. Hindi version would follow.


(Sanjay Mangal)
Principal Commissioner (GST)