Einvoice for Unregistered Government Departments

Hi Libissa,

Let's address your queries on e-invoicing for government departments without regular GSTINs but with TDS GSTINs:

1. Can you create e-invoice using TDS GSTIN (with TAN) for unregistered government departments?

• No. E-invoice must be generated against a valid regular GSTIN of the recipient.

• A TDS GSTIN (taken with TAN) is not a regular GSTIN for supply purposes; it is used only for TDS deduction and not for e-invoicing or regular GST compliance.

• For government departments without regular GSTIN, you cannot generate e-invoice using their TDS GSTIN.

• In such cases, you must either:

  • Confirm if they have a regular GSTIN; if not,

  • You may not be able to generate e-invoice for such supplies as per current norms, or

  • Some departments might be treated as unregistered recipients; but since your turnover is above threshold and e-invoice is mandatory, you need to consult with the department or tax consultant on the specific treatment or possible GST registration of such departments.

2. Invoice issued for Rs. 20,48,600 but department paid Rs. 15,00,000 and shows TDS on Rs. 12,00,000 — can you cancel the invoice in November and show taxable value Rs. 12,00,000 in Oct 3B & GSTR-1?

• Cancellation of e-invoice can be done only within 24 hours of generation, so cancellation in November of an October invoice is generally not allowed.

• Instead of canceling, you should issue a credit note for the difference or the amount not paid or agreed upon.

• The taxable value declared in GSTR-1 and 3B should match the actual invoice value or adjusted value (after credit note).

• You should reconcile with the department on actual payments and TDS details and ensure correct reporting.

• If you reduce taxable turnover in 3B without proper credit note or correction, it may raise mismatch issues.

3. Can you create e-invoice for Oct 2022 after department shows TDS amount on 10.11.2022, but e-invoice generated on 11.11.2022 with invoice date 30.10.2022?

• The invoice date and e-invoice generation date can differ but the invoice date must be the actual date of supply.

• You can generate e-invoice after TDS is reflected, but the invoice date must be earlier or the date of supply, and the IRN (e-invoice number) must be generated after invoice creation.

• Generating e-invoice after 10-11 days (for October invoice) is generally acceptable if done within the due date of return filing.

• However, delay beyond return filing date or mismatch in reporting invoice date and e-invoice generation date can cause notices or compliance issues.

• So timely generation is always recommended.

Summary:

• E-invoice requires regular GSTIN, not TDS GSTIN.

• You can’t cancel invoice after 24 hours; use credit note instead.

• Invoice date must be correct even if IRN is generated later, but avoid delays beyond return due date.

• Coordinate with the government department for GST registration status or any clarifications.