Central Tax Circulars

CGST Circular 90/2019

To,

The Principal Chief Commissioners / Chief Commissioners / Principal
Commissioners /
Commissioners of Central Tax (All) The Principal Director Generals / Director
Generals (All)

Madam/Sir,

Subject: Compliance of rule 46(n) of the CGST Rules, 2017 while issuing
invoices in
case of inter- State supply – Reg.

1) A registered person supplying taxable goods or services or both is
required to issue a tax invoice as per the provisions contained in section
31 of the Central Goods and Services Tax Act, 2017 (CGST Act for short).
Rule 46 of the Central Goods and Services Tax Rules, 2017 (CGST Rules for
short) specifies the particulars which are required to be mentioned in a tax
invoice.

2) It has been brought to the notice of the Board that a number of
registered persons (especially in the banking, insurance and telecom
sectors, etc.) are not mentioning the place of supply along with the name of
the State in case of a supply made in the course of interState trade or
commerce in contravention of rule 46(n) of the CGST Rules which mandates
that the said details must be mentioned in a tax invoice. In order 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 Central Goods and Services Tax Act, 2017, hereby issues the
following instructions.

3) After introduction of GST, which is a destination-based consumption
tax,
it is essential to ensure that the tax paid by a registered person accrues
to the State in which the consumption of goods or services or both takes
place. In case of inter-State supply of goods or services or both, this is
ensured by capturing the details of the place of supply along with the name
of the State in the tax invoice.

4) It is therefore, instructed that all registered persons making supply
of
goods or services or both in the course of inter-State trade or commerce
shall specify the place of supply along with the name of the State in the
tax invoice. The provisions of sections 10 and 12 of the Integrated Goods
and Services Tax Act, 2017 may be referred to in order to determine the
place of supply in case of supply of goods and services respectively.
Contravention of any of the provisions of the Act or the rules made there
under attracts penal action under the provisions of sections 122 or 125 of
the CGST Act.

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

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