Einvoice mandatory

Quick Summary
This discussion clarifies whether contractors supplying to government departments need to generate e-invoices. For businesses with a turnover exceeding Rs. 5 crore in the previous financial year, e-invoicing became mandatory from 1st August 2023 for taxable B2B supplies. However, the applicability to government departments is debated, as they may be registered for TDS (TAN-based) rather than full GST (PAN-based). The consensus leans towards e-invoicing not being required for supplies solely to government departments registered only for TDS, as this is not considered a standard B2B transaction.

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B2G GSTINs (TAN based for deduction of TDS) has been enabled from 01/09/2020 to report the Invoices in GSTR 1 and also enabled in e-Invoices. If Government department having GSTIN with based on their TAN, has to generate e-Invoice which has been enabled in e-Invoice portal.

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