E-Invoicing Applicable OR Not ?, Goods and Services Tax - GST

[RCPLLOGISTICS PVTLTD]

We provide the following services as mentioned below...

# Transportation by Road ( GTA with 12% FCM)

# Transportation by Train

# Transportation By Air

And our turnover is exceeding 50 Crores in exiting financial year.

So, Please guide to us whether e-invoicing will be applicable.?

Posts / Replies

[KASTURI SETHI]

Dear Querist,

Reply of SH. ABHISHEK TRIPATHI, Sir at serial no.14 above is as clear as sunshine.

[ABHISHEK TRIPATHI]

Even if you see the exemption for obtaining registration by GTA i.e., NN 5/2017. It says that if your “total tax” is payable under RCM then only you're exempted from obtaining registration. If GTA is paying forward charge or the same supplier is supplying other services on which tax is not paid on RCM then the supplier has to be registered. It means the exemption is available only w.r.t. to an entity that is exclusively providing GTA services.

Maybe the government intends to extend the benefit to your case, however, on strict interpretation, it seems that the benefit of not issuing an e-invoice is for the registered person exclusively providing GTA services.

Otherwise, in case, a big corp. can add GTA as a service, and claim the same benefit of exemption.

For instance, 500 Cr. turnover of supply goods and 5 Cr. turnover of GTA services under single registration number – aggregate turnover being 505 Cr. This entity can also call itself a GTA entity?

As in your case, GTA is 45 Cr. And Other Services are 12 Cr., yes for 45 Cr. you are not required to raise an invoice, however, for remaining 12 Cr. you are not exempted, in such a situation your aggregate turnover (for 12 Cr that is not exempted) will be again 57 Cr, and liable to e-invoice.

[ABHISHEK TRIPATHI]

Consult other registered person, other GTA players. Because other GTA players will also be providing transport by air etc. etc.

You may seek advance ruling on the same. Caveat – Looking at the history of advance rulings, one may say that it is Bhagwan Bharose.

Representation to the government, maybe they issue FAQ/Clarification regarding the same.

I personally think that the benefit of NN 13/2020 should be extended to your case, however, intricate issues and doubts are involved.

If someone says, your case is exempted then please put all these doubts that I have raised. If they satisfy your doubt then it's exempted. Don’t simply accept the proposition that FAQ Point 18 says exemption is w.r.t to “entity” hence, your GTA entity thus exempted. As them to establish you as a GTA entity, in situation when you supply other service.

Don’t worry, other than penalty, everything will get covered because in case they don’t accept invoice and disallow ITC then also things will get covered by 16(4) [My strong view on ITC].

[RCPLLOGISTICS PVTLTD]

Please make reply at serial no 15.

[ABHISHEK TRIPATHI]

Dear Sir,

E-invoice - Yes.

You do not fall under the exemption as you provide other services under the same registration. Exemption is w.r.t. to registered person who exclusively provides GTA services.

To the extent of GTA services (INR45 Cr.), its debatable and I am more inclined towards not raising an e-invoice for the same. But the other services, I think, e-invoice is to be raised.

I would love to be proven wrong (by good rationale). Because logically you should exempt the registered person, as if it falls like in your case. However, the strict interpretation of the notification doesn't speaks the same.

If you take legal opinion or ask other GTA player, then kindly let us know what they say about the same.

[ABHISHEK TRIPATHI]

Dear Sir,

While seeking any legal opinion, just make sure you must have Q&A session after professionals provide you with the opinion. Also make sure, after your Q&A, there must be room for modification of the legal opinion w.r.t. to your additional question/clarification, if required.