E-invoicing is shortly and more popularly known as e-invoice under GST. E-invoice is basically a system through which normally generated invoices are electronically authenticated by GSTN.
Mistakenly it is understood that e-invoice means the generation of invoice via GST portal. However, correctly, the same means submitting/ uploading of ERP/ accounting software generated invoice into Invoice Registration Portal (IRP) for electronic authentication.
The present article tries to clear the basics of e-invoice; covers various stages of implementation of e-invoice and briefly explains the applicability of the same under GST.
Basics of e-invoice under GST–
Basics of e-invoice are highlighted hereunder-
- E-invoice is a process through which a normally generated invoice is authenticated by GSTN. Post authentication, each invoice will be issued an IRN (i.e., Invoice Reference Number).
- E-invoice is applicable only to B2B transactions (i.e. supply of goods or services or both to registered person).
- E-invoicing basically aims reduction in evasion of tax; auto-population of various returns and also targets the reduction of reconciliations problem currently prevailing under GST.
Various stages of implementation of e-invoice under GST–
GST council, for the very first time, recommended the implementation of e-invoicing under GST during the 35th GST Council meeting held on 21st June 2019. Hierarchy of implementation of e-invoice is tabulated hereunder-
| Notification No. and date | Particulars of the notification | ||||||
| Notification 68/2019- Central Tax dated 13th December 2019 | Amendments in provisions rule 48 (manner of issuing invoice) under Central Goods and Services Tax Rules, 2017 to incorporate e-invoicing. | ||||||
| Notification 69/2019- Central Tax dated 13th December 2019 | Introduction of a set of common e-invoicing portal. | ||||||
| Notification 70/2019- Central Tax dated 13th December 2019 |
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| Notification 13/2020- Central Tax dated 21st March 2020 |
1. A banking company, 2. A non-banking financial company, 3. A financial institution, 4. An insurer, 5. A person engaged in supplying passenger transportation service, 6. A goods transport agency (GTA) supplying services, 7. A person engaged in supplying services in terms of admission of the exhibition of cinematograph films in the multiplex screen.
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| Notification 61/2020- Central Tax dated 30th July 2020 |
In nut-shell, e-invoicing is made mandatory in B2B transactions for registered person having an aggregate turnover of more than INR 500 Crores (earlier it was notified as INR 100 Crores) in a financial year. |
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| Notification 88/2020- Central Tax dated 10th November 2020 |
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| Notification 05/2021- Central Tax dated 8th March 2021 |
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Applicability and non-applicability of e-invoice under GST–
Stage-wise applicability of e-invoice under GST based on aggregate turnover is explained hereunder-
| Effective date from which e-invoice became mandatory | Category of persons |
| 1st October 2020 | The person having an aggregate turnover of more than INR 500 Crores in a Financial year. |
| 1st January 2021 | The person having an aggregate turnover of more than INR 100 Crores in a Financial year. |
| 1st April 2021 | The person having an aggregate turnover of more than INR 50 Crores in a Financial year. |
However, e-invoice doesn’t apply to the following category of persons irrespective of their turnover-
1. Special Economic Zone units,
2. An insurer,
3. An NBFC,
4. A Goods Transport Agency,
5. A banking company,
6. A financial institution,
7. A person supplying passenger transportation services,
8. A person supplying services of admission to the exhibition of the cinematographic films in multiplex services.
Additionally, e-invoicing doesn’t apply to any person having an aggregate turnover of less than INR 100 Crores (INR 50 Crores from 1st April 2021) in a financial year.
Further, e-invoicing doesn’t apply in B2C transactions (i.e. supply of goods or services or both to an unregistered person).
Author Bio
is e invoicing applicable to rental transaction
Whether Government contractor needs to generate e-invoice ??
whether its in need to raise E invoice for silver articles
Sir, we are govt civil contractor, should we rise e-invoice to govt. departments (RWD Division, R&B Division etc) .
Is e-Invoicing applicable for PACKERS & MOVERS services and what is the criteria of turnover.
Hello Sir,
As per the standard and rules of gst there is no need of e invoices for Non Gst invoices or B2B invoices, but you must make sure it from auditor or CA first.
I’m a software developer, having 4+ years of experience in ERP and mission critical software productions and development, I delivered the support and api integration to more than 60+ clients. With different kinds of gst providers e.g. Gst Hero, Webtell, Tcs etc. So if anyone here needs any integration in existing software or needs full fledged customize ERP Software then please contact me.
Email- sf65003@gmail.com
Whether e invoicing is applicable to Hospitals, as amount of sale of goods (Scrap,) is very less. Major receipts are from Services.
Dear Sir
We need to create E invoice for Rental invoice
When we trying to create and validate E invoice in Json Preperation in Excel we have received the below error. Kindly confirm how we do einvoice for service
”
Hsn code cannot start from 99 if is_service is ‘No’!! Check at column AJ
“
Hello Sir,
This error is occurrs due to invalid HSN code as per product/services w.r.t bill and its type.
For correction and suggestions please refer the standard documentation to build a json request as per NIC portal format.
I’m the software developer having 4+ years of experience in ERP and mission critical software productions and development,
I delivered the support and api integration to more than 60+ clients. With different kinds of gst providers e.g. Gst Hero, Webtell, Tcs etc.
So if anyone here needs any integration in existing software or needs full fledged customize ERP Software then please contact me.
Email- sf65003@gmail.com
E-INVOICE LIMIT FOR SINGLE BILL AMOUNT
MY CLIENT HAVE A EXPORT BUSINESS AND HIS TUNOVER THIS YEAR ABOVE 50CR.
I HAVE TO KNOW THAT WE CAN MAKE E INVICE
IF MY TURNOVER IS 50 CR IN DEC 15 TH 2021, SO E-INVOICE APPLICABLE FROM 15TH DEC 2021 OR FROM NEXT F.Y.
E-Invoice is required for Non-GST spplies B2B or not.