E-invoice mandatory for business with Rs 10 crore Turnover w.e.f 01.10.2022

As we all know GST registered businesses with annual turnover of ₹ 10 crore or more will have to generate e-invoices for B2B transactions from October 1, the finance ministry said.

Now, large number of taxpayers will be required to generate e-invoices w.e.f 01.10.2022 but in this busy schedule we all want to know some important points related to e-invoices.

So, Today I will discuss some important points that we all should know-

1. To whom E-invoicing apply –

E-Invoicing is mandatory from 1st October 2022 to all businesses whose aggregate turnover has exceeded the Rs.10 crore limit in any of the previous financial years from 2017-18 to 2021-22.

2. To whom E-invoicing does not apply?

E-invoice doesn’t apply to the following category of persons irrespective of their turnover-

• SEZ UNITS
• An Insurer
• An NBFC
• GTA
• A Banking Company
• A Financial Institution
• A person supplying passenger transportation services
• A person supplying services of admission to the exhibition of the cinematographic films in multiplex services.

3. What are supplies covered under e-invoicing?

E-Invoicing currently applies to:

• Supplies to registered persons (i.e., B2B supplies),
• Supplies to SEZs (with/without payment of tax),
• Exports (with/without payment of tax), and
• Deemed exports,

4. Is E-invoicing applicable to nil –rated /wholly exempt supplies?

No, e-invoicing is not applicable to nil-rated or wholly-exempt supplies as in these cases, only a bill of supply is issued and not a tax invoice.

5. Is E-invoicing applicable to financial or commercial credit notes – 

No, E-invoicing not applicable to financial or commercial credit notes.

6. Benefits of E-invoicing – 

• Main benefit is reduction in evasion of tax as every tax invoice is authenticated by GSTN .Post authentication , each invoice will be issued an IRN (Invoice reference number )
• Auto-population of various data to GST returns
• Reduction of reconciliation problems
• E-Way Bill will be auto generated.

7. Points to be kept in mind- No Amendment possible in Invoice –once e-invoice is generated though it can be cancelled within 24 hrs. Further, Document number cancelled cannot be used again for generation of e-invoice. Firstly E-way bill need to be cancelled then IRN. 

Queries /doubts related to above mailed at mamta0581@gmail.com