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
Author Bio
If my last year FY 21-22 was less than 10 CR (including all previous years from 2017) but lets says if this year my turnover is greater than 10 CR from April 22 to Sep 22 period, is e-invoice applicable from 1st October 22 or will it be applicable from April 23.
no
if previous year torun over is more than 10 crorers, but the torunover is tax free,so E-invoice is applicable after 1.10.22. the party has take gst number this year on date 30.07.22 and this year tournvoer only 2 cores
IF YOU SUPPLIES TAXABLE GOODS B2B THEN YES E INVOICE IS APPLICABLE EVENTHOUGH YOUR CURRENT YEAR TURNOVER IS LESS THEN 10CR AS WHAT WE HAD TO LOOK IS AGGREGATE TURNOVER OF FY 2017-18 TO 2021-22.