E-invoicing under GST

e-invoicing under GST
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Last updated on September 28th, 2022 at 09:05 am

E-invoicing under GST

E-invoicing is applicable to whom? |What is the turnover limit for e-invoices?

The government has implemented e-invoicing in a phased-out manner. If the annual aggregate turnover crosses the threshold limit in any of the financial years starting from 2017-18 then the taxpayer will be expected to issue e-invoices.

For eg. If the AATO for FY 2018-19 was Rs 11 Crores, then e-invoicing shall be applicable from 1st Oct 2022.

Phase

Turnover Threshold

Effective Date

Phase I

AATO > Rs 500 Crores 1st Oct 2020

Phase II

AATO > Rs 100 Crores 1st Jan 2021
Phase III AATO > Rs 50 Crores

1st Apr 2021

Phase IV

AATO > Rs 20 Crores

1st Apr 2022

Phase V AATO > Rs 10 Crores

1st Oct 2022

How to verify whether e-invoicing is applicable to you?

Go to the E-invoicing Portal (Link)

Go to the “Search” menu

Select “e-invoice Status of the taxpayer” from the drop-down list

Enter the “GSTIN of the taxpayer” & “Captcha code”

Click on “Go” to check whether you or any particular GSTIN is supposed to issue an e-invoice or not.

Link – https://einvoice1.gst.gov.in/Others/EinvEnabled

 

e-invoice

 

Is e-invoice mandatory for all transactions? | For which transaction e-invoices are not to be issued?

E-invoices should be generated for the following transactions

⇒ For B2B supplies (includes debit note/ credit note/ outward supplies attracting RCM)

⇒ For SEZ supplies

⇒ For Exports   (includes Deemed Exports)

 

E-invoices should not be generated for the following transactions

⇒ For import Bills of Entry

⇒ For high sea sales

⇒For bonded warehouse sales

⇒ For nil-rated supplies

⇒ For wholly exempt supplies

⇒ For non-GST supplies

⇒ For B2C supplies

 

Who is exempted from issuing e-invoices?

E-invoicing will not be mandatory for the following class of taxpayers   

⇒ Special Economic Zone unit [includes Free Trade & Warehousing Zones (FTWZ)]

⇒ Goods Transport Agency [GST on GTA w.e.f. – 18.07.2022]

⇒ Passenger Transport Service

⇒ Supplying Services by way of admission to the exhibition of cinematograph films on multiple screens

⇒  An insurance company or a banking company or a financial institution, including a non-banking financial company.

⇒ A government department that is not registered under the GST

⇒ A local authority that is not registered under the GST

⇒ Input Service Distributors

⇒ A registered taxpayer whose annual aggregate turnover does not exceed Rs 20 Crores ( Rs 10 Crores w.e.f. 1st October 2022)

Relevant Rule:  Sub-rules (2),(3),(4) & (4A) of CGST Rule 54

Relevant Notification: No. 13/2020, No. 61/2020 & No. 23/2021

 

Will a tax invoice without IRN be considered valid?

As per Rule 48(4), only a document issued containing an IRN will be considered a valid tax invoice for the taxpayers who are required to issue e-invoices on the Invoice Registration Portal. Non-issuance of e-invoices may also result in blockage of ITC for the recipient.

Note: As per Rule 48(6), An e-invoice need not be issued in triplicate/duplicate.

 

What is the time limit for generating IRN/e-invoice?

The time limit has specifically not been defined under the provision of the Act or Rules made there under. However, as per Rule 48(5), an invoice will be considered valid only after its registration on IRN.

Can an e-invoice be modified?

E-invoice cannot be modified once it is generated. If any modification is required it can be done while filing GSTR 1.

 

Can an e-invoice be canceled?

An e-invoice can be canceled within 24 hours of its generation.  If any cancellation is required after 24 hours then it can be done while filing GSTR 1.

 

What declaration needs to be added to the tax invoice for not issuing e-invoices?

Taxpayers who are not issuing e-invoices should add the declaration as per Rule 46(s) in the tax invoice.  What declaration needs to be added?

Relevant Rule:  Sub-rule (s) of CGST Rule 46

Relevant Notification: No. 14/2020  effective from 5th July 2022

 

What are the penal provisions for the non-issuance of invoices in compliance with provisions applicable for e-invoicing? 

Penal provisions as per section 122 shall be levied for non-issuance of invoices in compliance with applicable provisions of the Act & Rules.

As per proviso to Section 122(1) – Taxpayer shall be liable to pay a penalty of Rs 10,000/- or an amount equivalent to the tax evaded or tax not deducted, short paid, short deducted whichever is higher.

As per Section 122(3)(e) – A penalty which may extend up to Rs 25,000/- can be levied.

What details can you retrieve by scanning the QR code on the e-invoice? |How can you verify whether the E-invoice issued to you is genuine or not?

Download the QR Code Verification App developed by NIC. The link to download the application will be sent as a text message to your mobile number once you e-verify your number on the E-invoice portal. (Link to verify your mobile number on the e-invoice portal)

The following details of the invoice will be displayed upon scanning the QR code:-

  • Supplier’s GSTIN
  • Recipient’s GSTIN
  • Document No.
  • Document Type
  • Document Date
  • Total Invoice Value
  • No. of line items
  • HSN
  • IRN
  • IRN Date
  • Issued by
  • e-Sign

 

 

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CA Ankita Khetan
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Disclaimer: The above content is for general info purpose only and does not constitute professional advice. The author/ website will not be liable for any inaccurate / incomplete information and any reliance you place on the content is strictly at your risk.

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