E Invoice for Land rent to Indian oil corporation

This query is : Resolved

Prabhakar (Querist)
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22 April 2023 My turnover for last financial year is 10.5 crore which includes mostly petrol and diesel and monthly land rent of around 7500 we generate a manual gst invoice for above rent, e invoice enablement status is showing as not enabled for e-invoicing with reason tax payer type is not allowed, please let us know from this April 2023 do we need to issue e-invoice for land rent of 7500 everymonth or manual invoice is OK as per below. Is e-Invoicing applicable for NIL-rated or wholly-exempt supplies?
No. In those cases, a bill of supply is issued and not a tax Invoice.

CA SANDESH MAHIPAL

CA SANDESH MAHIPAL (Expert)
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22 April 2023 As per GST provisions, if aggregate turnover of any previous year starting from 2017-18 is more than 10 cr., then e-invoice is mandatory. The term aggregate turnover is defined under section 2 of CGST Act, 2017. Supply of petrol and diesel is not subject to GST as per section 9(2). Therefore, turnover of the same should not be counted for computation of aggregate turnover of 10 cr. conclusions, you are not liable for generation of e-invoice because your aggregate turnover is less than 10cr in previous fy. Regards

Prabhakar

Prabhakar (Querist)
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30 April 2023 Hi Sandesh,
Thanks for the response
Have seen an update below on http://www.expertspanel.in/index.php?qa=62419&qa_1=e-invoice-applicability

e- Invoicing should be applicable as Non-GST supply is also a part of Aggregate turnover (read definition of Aggregate turnover, exempt supply and non-taxable supplies under section 2).

Can you confirm

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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21 July 2024 Yes, you are correct in your understanding. As per the GST (Goods and Services Tax) provisions in India, the concept of aggregate turnover includes all taxable supplies, exempt supplies, exports of goods or services, and inter-state supplies of persons having the same PAN. This definition is crucial for determining various thresholds and compliance requirements under GST.

Here’s a breakdown of the terms you mentioned:

1. **Aggregate Turnover:** This includes the total value of all taxable supplies, exempt supplies, exports of goods or services, and inter-state supplies of persons having the same PAN. It excludes taxes charged under the CGST Act, SGST Act, UTGST Act, and IGST Act.

2. **Exempt Supply:** Refers to the supply of goods or services which are not taxable under GST. Exempt supplies include certain items like agricultural produce, health care services, educational services, etc.

3. **Non-Taxable Supplies:** These are supplies that do not attract GST. Examples include alcoholic liquor for human consumption, petroleum crude, diesel, petrol, etc.

Regarding e-invoicing, the aggregate turnover is relevant because it determines whether a taxpayer is required to comply with e-invoicing requirements. As per the latest regulations, e-invoicing is applicable to businesses whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds the prescribed limit (currently INR 100 crore for businesses registered in any state other than specified special category states).

For businesses falling under the aggregate turnover threshold, e-invoicing is not mandatory. However, if a business's aggregate turnover exceeds the threshold, e-invoicing becomes mandatory for all supplies, including exempt supplies and non-taxable supplies, which are part of the aggregate turnover calculation.

Therefore, e-invoicing applies to businesses based on their aggregate turnover, which encompasses all types of supplies, whether taxable, exempt, or non-taxable, as defined under the GST Act.

It's essential for businesses to regularly monitor their turnover and ensure compliance with GST provisions, including e-invoicing requirements, based on the aggregate turnover criteria laid down by the authorities.