Wednesday 20 July 2022

Rule 46(s) – Declaration in tax invoice under GST

Registered persons whose Annual Aggregate Turnover (AATO) exceeds the notified limit but were exempted by CGST Notification No. 13/2020 & No. 61/2020 & No. 70/2020; eg. as below:

·       Special Economic Zone Units

·       Insurers

·       Banking companies or financial institutions, including a non-banking financial company (NBFC)

·       Goods Transport Agency (GTA) supplying services in relation to transportation of goods by road in a goods carriage

·       Suppliers of passenger transportation service

·       Suppliers of services by way of admission to an exhibition of cinematograph films in multiplex screens

·       Persons registered in terms of Rule 14 of CGST Rules [Online Information Database Access and Retrieval services](OIDAR)

[Declaration under Rule 46(s)] that needs to be fulfilled while generating a tax invoice by the registered person to whom by virtue of AATO, e-invoicing would have been applicable as per rule 48(4) but is not generating e-invoices due to certain exemptions notified by Govt.

Rule 46(s) was inserted by First Amendment, 2022 to the CGST Rules, 2017 vide a CGST Notification no. 14/2022 dated 5th July 2022 and will come in force on 5th July 2022.

The following declaration shall be added to the tax invoice for cases where the e-invoice is not being generated

” I/We hereby declare that though our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under sub-rule (4) of rule 48, we are not required to prepare an invoice in terms of the provisions of the said sub-rule.”

Tax invoice which is required to contain the declaration under rule 46(s)?

Taxpayers whose AATO exceeds the notified limit will be required to add the declaration in the tax invoices in the following cases

Taxable Supplies

Whether an e-invoice is being generated

Declaration under rule 46(s) to be added in e-invoice

B2B

Yes

No

B2C

No

Yes

B2B or B2C supplies of an exempted category of taxpayers. eg. GTA, NBFC etc.

No

Yes