Last updated on August 2nd, 2022 at 11:20 am
Legal roadmap for E-Invoicing GST
Government is in no mood to leave any scope to fix the loopholes for tax leakages and tax evasion fake invoicing, circular trading, etc. The government is looking at addressing the above issues from the point of inception of any transaction i.e. generation of tax invoices. E-invoicing is being implemented phase-wise in the country as and when the functionality and technology to implement the same is ready with the Government.
On 28th July 2022 – Testing was enabled for the taxpayers having AATO between Rs 5 Crores to Rs 10 Croreson e-invoicing API-sandbox.
Note: CBIC is yet to notify the date from which e-invoicing will be made mandatory for the taxpayers whose AATO is above Rs 5 crores and upto to Rs 10 crores.
GST Council had first approved the standard of e-invoice in the 37th GST Council Meeting held on 20th Sep 2019.
Phase I – E-invoicing was made mandatory for registered taxpayers, other than a special economic zone unit & those referred to in sub-rule (2), (3), (4) & (4A) of rule 54, whose aggregate turnover in the financial year exceeds Rs. 500 Crores w.e.f. 1st October 2020.
Phase II – E-invoicing was made mandatory for registered taxpayers, other than a special economic zone unit & those referred to in sub-rule (2), (3), (4) & (4A) of rule 54, whose aggregate turnover in the financial year exceeds Rs. 100 Crores w.e.f. 1st January 2021.
Phase III – E-invoicing was made mandatory for registered taxpayers, other than a special economic zone unit & those referred to in sub-rule (2), (3), (4) & (4A) of rule 54, whose aggregate turnover in the financial year exceeds Rs. 50 Crores w.e.f. 1st April 2021.
Phase IV – E-invoicing will be mandatory for registered taxpayers, other than a special economic zone unit & those referred to in sub-rule (2), (3), (4) & (4A) of rule 54, whose aggregate turnover in the financial year exceeds Rs. 20 Crores w.e.f. 1st April 2022.
Phase V – E-invoicing will be mandatory for registered taxpayers, other than a special economic zone unit & those referred to in sub-rule (2), (3), (4) & (4A) of rule 54, whose aggregate turnover in the financial year exceeds Rs. 10 Crores w.e.f. 1st October 2022.
E-invoicing is being implemented in a phased manner so it is advisable (not mandatory) to obtain a declaration from vendors whether e-invoicing is applicable to them or not. Specimen for such declaration to be obtained from vendors.
How to check whether a particular GSTIN is supposed to issue an e-invoice?
You can enter a GSTIN and enter the captcha code and check whether a particular GSTIN is supposed to issue an e-invoice or not.
Link – https://einvoice1.gst.gov.in/Others/EinvEnablede-invoice
E-invoices are not required to be issued 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
E-invoicing will not be mandatory for the following Â
⇒ A registered taxpayer whose annual aggregate turnover does not exceed Rs 20 Crores ( Rs 10 Crores w.e.f. 1st October 2022)
⇒ Special Economic Zone unit
⇒ Goods Transport Agency [GST on GTA w.e.f. – 18.07.2022][Read in detail 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
CBIC has issued the following notifications so far laying down the legal roadmap for E-Invoicing
No. 17 dated 01.08.2022 – Notify the taxpayers having AATO> Rs 10 Crores to issue e-invoices.
No. 14 dated 05.07.2022 – Rule 46(s) requires mandatory declaration in the tax invoices. [Understand Rule 46(s)]
No. 01 dated 24.02.2022 – Notify the taxpayers having AATO> Rs 20 Crores to issue e-invoices.
No. 23 dated 01.06.2021 – To include certain classes of registered persons into the exemption list from issuing e-invoices.
No. 05 dated 08.03.2021 – Notify the taxpayers having AATO> Rs 50 Crores to issue e-invoices.
No. 88 dated 10.11.2020 – Notify the taxpayers having AATO> Rs 100 Crores to issue e-invoices.
No. 73 dated 30.09.2020 – Notify a special procedure for taxpayers for issuance of e-Invoices for October 2020
No. 72 dated 30.09.2020 – To make the Eleventh amendment (2020) to the CGST Rules.
No. 70 dated 30.09.2020 – To amend CGST Notification no. 13 in order to amend the financial year and to include taxpayers
No. 61 dated 30.07.2020 – To amend notification 13 in order to notify the taxpayers having AATO> Rs 500 Crores to issue e-invoices.
No. 60 dated 30.07.2020 – To make the Ninth amendment (2020) to CGST Rules.
No. 13 dated 20.03.2020 – Notify the taxpayers having AATO> Rs 100 Crores to issue e-invoices. (which was later amended to Rs 500 crores)
No. 72 dated 13.12.2019 – Notify the class of registered persons required to issue invoices having QR codes.
No. 71 dated 13.12.2019 – To give effect to Rule 46 of the CGST Rules, 2017.
No. 70 dated 13.12.2019 – Notify the class of registered persons required to issue e-invoice.
No. 69 dated 13.12.2019 – Notify the common portal for the purpose of e-invoice.
No. 68 dated 13.12.2019 –Â To carry out changes in the CGST Rules, 2017
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