In exercise of the powers conferred by section 148 of the Delhi Goods and Services Tax Act, 2017

## Report on Delhi Goods and Services Tax (DGST) Notification No. 732020 **1. Executive Summary:** This report analyzes a notification issued by the Government of the National Capital Territory of Delhi regarding the Delhi Goods and Services Tax (DGST) Act, 2017. The notification addresses the preparation of tax invoices and mandates a special procedure for registered persons who prepared tax invoices in a manner not specified under sub-rule 4 of rule 48 of the Delhi Goods and Services Tax Rules, 2017. Specifically, it requires such persons to obtain an Invoice Reference Number (IRN) by uploading particulars in FORM GST INV-01 on the Common Goods and Services Tax Electronic Portal within thirty days of the invoice date, failing which the invoice will not be treated as valid. The key finding is that this notification enforces stricter compliance with invoice generation standards. **2. Introduction:** The purpose of this report is to provide an informative overview of Notification No. 732020 issued by the Finance Expenditure Department of the Government of the National Capital Territory of Delhi, concerning the Delhi Goods and Services Tax (DGST) Act, 2017, based solely on the information provided in the document. **3. Policy Overview:** * This notification functions as an amendment or clarification to existing DGST rules concerning tax invoice preparation. * **Core Objective:** Based on the text, the primary objective is to ensure uniform compliance with the specified manner of preparing tax invoices under the DGST Rules, by mandating the generation of an Invoice Reference Number (IRN) for invoices prepared in a non-compliant manner. **4. Background and Rationale:** * This is an amendment/clarification. The notification suggests that some registered persons were not preparing tax invoices in the manner specified under sub-rule 4 of rule 48 of the Delhi Goods and Services Tax Rules, 2017. This amendment aims to address this non-compliance by imposing a specific procedure (IRN generation) and a consequence for failing to follow it (invalidation of the invoice). **5. Key Provisions / Changes:** * This notification introduces a **special procedure** for registered persons who have prepared tax invoices **in a manner other than** that specified under sub-rule 4 of rule 48 of the Delhi Goods and Services Tax Rules, 2017. * The **new rule** stipulates that these persons **shall** obtain an Invoice Reference Number (IRN) for such invoices by uploading specified particulars in FORM GST INV-01 on the Common Goods and Services Tax Electronic Portal. * The **difference** (effect) of this change is that invoices not complying with sub-rule 4 of rule 48 *and* lacking an IRN generated within 30 days will not be treated as valid invoices under the DGST Act. This incentivizes compliance with the prescribed invoice format and introduces a mechanism for rectifying non-compliant invoices within a specified timeframe. It adds an extra step for those not initially compliant. **6. Target Audience and Stakeholders:** The target audience and stakeholders are **registered persons** under the Delhi Goods and Services Tax Act, 2017, specifically those who are *required* to prepare tax invoices in the manner specified under sub-rule 4 of rule 48 of the Delhi Goods and Services Tax Rules, 2017, *but have not done so*. It also affects those responsible for the Common Goods and Services Tax Electronic Portal. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Finance Expenditure Department of the Government of the National Capital Territory of Delhi is responsible for issuing the notification. The Common Goods and Services Tax Electronic Portal is the platform for implementation. * **Timelines:** The special procedure applies to the period from October 1, 2020, to October 31, 2020 (though the notification was issued in March 2021, suggesting a retrospective application). The deadline for obtaining the IRN is within thirty days from the date of the invoice. * **Amendment-Specific Aspects:** The electronic portal must be able to accommodate the uploading of information and the generation of IRNs for invoices submitted under this special procedure. **8. Expected Outcomes / Impact of Changes:** * The likely intended outcome of these changes is to improve compliance with the specified format for tax invoices. * The potential impact is a reduction in the number of non-compliant invoices, greater accuracy in tax reporting, and potentially increased tax revenue due to improved enforcement. Registered persons who were not preparing invoices correctly will now face a strong incentive to comply to ensure invoice validity. The late notification (March 2021 for October 2020 invoices) may lead to challenges for businesses in complying retroactively. **9. Conclusion:** Notification No. 732020 mandates a special procedure for registered persons in Delhi who have not prepared tax invoices as specified under existing rules. This involves obtaining an Invoice Reference Number (IRN) through the GST portal within a strict timeframe. The significance of this notification lies in its emphasis on compliance and the potential consequences (invalidation of invoices) for non-compliance. This aims to increase the accuracy and standardization of tax invoices under the DGST regime. However, businesses need to be aware of these changes, particularly given the retrospective period it covers.

Key Entities Referenced