E-Invoice – A Recent Cover in GST

With the Notification No. 01/2022- Central Tax dated 24/02/2022 the turnover limit is further reduced to Rs. 20.00 Crores to cover a large number of taxpayers within the ambit of E-INVOICE under GST.

The essence of GST is to remove the cascading effect of tax and to pass on the GST credit at each stage. With these benefit there come certain repercussions and is violated by the issue of fake invoice and to claim the input tax credit. In order to curb the fake invoice tax racket and a way forward towards digital India and to interlink all the GST platforms an e-invoice platform is made ready to go from 01/04/2022.

E-Invoice :- Electronic Invoice to be generated by uploading the specified particulars of invoice in the Form GST INV-01 on invoice registration portal and obtain an IRN (Invoice Reference Number) along with QR Code.

• Applicability of E-Invoice :-

1. All the GST Registered person having aggregate t/o of more than Rs. 20.00 crores in any of the financial year form 2017 till 2022. ( The t/o from 01/07/2017 shall be considered for the f/y 2017-18)

2. All the sales made to GST registered party i.e. B2B Sales, export (with or without payment of tax), supply to SEZ Units (with or without payment of tax), deemed export and sales made to the distinct person having a different GST registration number under common PAN .

3. Aggregate t/o for reckoning the limit of Rs. 20.00 crore :-

As per Section 2(6) of the CGST Act: “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

• Documents covered under of E-Invoice :-

E-invoice is required to be generated for all the invoices, debit notes and credit notes issued.

Commercial and financial credit notes are not covered under e-invoice.

• Exemption from E-invoice :-

# Entity wise Exemption (Entity who are not required to generate e-invoice)

1. NON-GST party.

2. Banks/ Financial Institutions/ NBFCs.

3. Insurance Company.

4. GTA (Goods Transporting Agency).

5. Supplier of passenger transportation services

6. Supplier of services by way of admission to the exhibition of cinematograph films in multiplex screens.

7. Special Economic Zones (SEZs) Units (Notified vide Notification No. 13/2020 and 61/2020- Central Tax). As per the notifications, exclusion is for SEZ Unit and not for SEZ developers.

# Transaction wise Exemption

1. B2C Invoice (Invoice issued to end consumers).

2. Nil rated / Exempted Supply

• Interoperability / Synchronization of GSTR-1, GSTR-2A and E-way bill :-

With an Introduction of E invoicing government has a plan to achieve a seamless flow of Input Tax Credit and to curb the fake invoice tax bracket. With E invoicing real-time posting of ITC in receivers GSTR 2A and posting of forward invoice in GSTR 1 of supplier will be automated. Which is another positive move towards generation of automated GST returns.

Moreover, the Part- A of E-way bill will also be auto populated, wherever required.

Thus, with the introduction of e-invoicing there is a greater transparency in every sphere of business moving towards the aim of digital India.

*****

GST e-invoice/IRN System – Frequently Asked Questions – (Version 1.4 Dt. 30-03-2021)

*****

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.

The writer is a direct and indirect tax expert and can be reached on jainakansha1809@gmail.com.