“Elevate your understanding of E-Invoicing compliance with this concise note. Delve into Rule 48 of CGST Rules, covering the issuance of invoices and recent amendments. Uncover the specific conditions for generating an Invoice Reference Number (IRN) and its significance. Stay informed about the evolving thresholds and effective dates for E-Invoicing compliance. Explore key details on QR codes, applicability, modes of generation, and cancellation procedures. Stay ahead in the realm of GST compliance.”
Manner of issuance of invoice
Rule 48 of the Central Goods and Services Tax Rules, 2017 (CGST Rules) provides for the ‘manner of issuing invoice’.
Sub-rule (1) of rule 48 states that the invoice should be raised in triplicate on supply of goods and as per sub-rule (2) the invoice should be raised in duplicate on supply of services.
On 13th of December, 2019 sub-rule (4), (5) and (6) was inserted to rule 48 providing the additional condition for the manner of issuance of invoice. The newly inserted sub-rules are re-produced below:
“(4) The invoice shall be prepared by such class of registered persons as may be notified by the Government, on the recommendations of the Council, by including such particulars contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common Goods and Services Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.
(5) Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the manner specified in the said sub-rule shall not be treated as an invoice.
(6) The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the manner specified in sub-rule (4).”.
Sub-rules (1) and (2) is re-produced below:
Sub-rule (1) The invoice shall be prepared in triplicate, in the case of supply of goods, in the following manner, namely,-
(a) the original copy being marked as ORIGINAL FOR RECIPIENT;
(b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and
(c) the triplicate copy being marked as TRIPLICATE FOR SUPPLIER.
Sub-rule (2) The invoice shall be prepared in duplicate, in the case of the supply of services, in the following manner, namely,-
(a) the original copy being marked as ORIGINAL FOR RECIPIENT; and
(b) the duplicate copy being marked as DUPLICATE FOR SUPPLIER.
As per above stated rules, the Government will select certain class of registered persons on the recommendations of the GST Council who shall be uploading the information of the invoice in Form GST INV-01 in the common electronic portal subject to certain conditions and restrictions and get invoice reference number and shall incorporate it in the invoice.
In the event the selected class of registered person fails to upload the information in the common electronic portal then the invoice raised shall not be treated as an invoice. In other words, the invoice raised by certain class of registered person, not having invoice reference number incorporated on it shall not be considered as a valid invoice. If this be the case then one of the condition prescribed u/s 16(2)(a) to claim input tax credit by the recipient person will not get fulfilled and as a reason his claim of input tax credit would be rejected. .
The selected class of registered person who meets the compliance of sub-rule (4) are not required to fulfill the requirement of sub-rule (1) and (2) i.e. invoice need not be prepared in triplicate or duplicate on the supply of goods or services as the case may be.
Selected class of registered persons
CBIC has notified the class of registered person vides Notification no. 70/2019 – Central Tax dated 13.12.2019 that shall be generating invoice reference number. As prescribed in the notification, the registered persons whose aggregate turnover in a financial year exceeds one hundred crore rupees shall do the compliance of rule 48(4) effective from 01.04.2020.
In the month of March, 2020 a Notification no. 13/2020 – Central Tax dated 21.03.2020 was published superseding Notification no. 70/2019 – Central Tax dated 13.12.2019 supra, and extending the date of implementation of rule 48(4) to 01.10.2020.
E-invoicing: 500 crore turnover- 01.10.2020
On 30.07.2020 the said threshold limit was increased to 500 crores vide notification no. 61/2020 – Central Tax.
On 30th September, 2020 Notification no. 70/2019 – Central Tax dated 13.12.2019 was published to amend the Notification no. 13/2020 – Central dated 21.03.2020 so as to substitute, – a) ‘financial year’ with ‘any preceding financial year from 2017-18 onwards and b) ‘goods or services or both to a registered person’, the words ‘’or exports’ shall be inserted.
E-invoicing was implemented on 01.10.2020. As a first time relief a special procedure was prescribed for period from 01.10.2020 to 31.10.2020 whereby it was allowed to generate e-invoice within thirty days from the date of such invoice.
E-invoicing: 100 crore turnover- 01.01.2021
On 10th November, 2020, notification no. 88/2020 – Central Tax was published to lower the threshold to 100 crore effective from 01.01.2021.
E-invoicing: 50 crore turnover- 01.04.2021
On 8th March, 2021, notification no. 05/2021 – Central Tax was published to lower the threshold to 50 crore effective from 01.04.2021.
A notification no. 23/2021 – Central Tax dated 01.06.2021 was published to amend first para of the notification no. 13/2020 – Central Tax dated 21.03.2020. After the words “notified registered person, other than” the words “a government department, a local authority,’
E-invoicing: 20 crore turnover- 01.04.2022
On 24th February, 2022 a notification no. 01/2022 – Central Tax was published to lower the threshold limit to 20 crore effective from 01.04.2022.
E-invoicing: 10 crore turnover- 01.10.2022
On 01st August, 2022 a notification no. 17/2022 – Central Tax was published to lower the threshold limit to 10 crore effective from 01.10.2022.
E-invoicing: 5 crore turnover- 01.08.2023
On 10th May, 2023 a notification no. 10/2023 – Central Tax was published to lower the threshold limit to 5 crore effective from 01.08.2023
Summary of the date-wise change in the e-invoice compliance
| Turnover limit | Effective date | Notification |
| 01.10.2020 | 500 crore | notification no. 13/2020 – Central Tax dated 21.03.2020 |
| 01.01.2021 | 100 crore | 88/2020 – Central Tax dated 10.11.2020 |
| 01.04.2021 | 50 crore | 05/2021 – Central Tax dated 08.03.2021 |
| 01.04.2022 | 20 crore | 01/2022 – Central Tax dated 24.02.2022 |
| 01.10.2022 | 10 crore | 17/2022 – Central Tax dated 01.08.2022 |
| 01.08.2023 | 5 crore | 10/2023 – Central Tax dated 10.05.2023 |
Few important points given below :
Threshold / Aggregate turnover for the purpose of checking if you fall under the compliance of rule 48(4)
- Aggregate value of all taxable suppliers,
- exempt suppliers
- exports of goods or services or both
- interstate supplies of persons having same PAN
To be computed on all India basis.
Excludes
- value of inward supplies on which reverse charge applies
- all taxes viz IGST, CGST, SGST, UTGST
Invoice Reference Number
It is 64 character hash algorithm containing GSTIN of supplier, invoice number, document type and financial year.
QR Code
Quick Reference code consist of
- GSTIN of supplier
- GSTIN of buyer
- Invoice number,
- Invoice date
- Invoice value
- Number of line items
- HSN of major commodity as per value
- Unique IRN (Hash)
Applicability of e-invoicing
- B2B invoices
- Export invoices
- Credit notes
- Debit notes
Non- applicability of e-invoice
- B2C supplies
- Bill of entry /imports
- SES Units
- Insurer or a banking company or a financial institution, including a non-banking financial company.
- Goods transporter agency supplying services in relation to transportation of goods by road in a goods carriage.
- Suppliers of passenger transportation service
- Suppliers of services by way of submission to exhibition of cinematograph films in multiplex screens
Modes of generation of e-invoice
1. Through GST System – Invoice Registration Portal (IRP) – Machine to Machine
2. Small Taxpayers – NIC –GePP – On System, & GePP-off System
3. API Based, SMS Based, Mobile App based, offline tool (JSON file).
4. GSP Based & Web Based
Cancellation of E-invoice
1. IRN generated on the portal can be cancelled within 24 houres
2. IRN cannot be cancelled, if valid E-Way Bills exists for that IRN
3. Once e-invoice (IRN) is cancelled, then one more IRN cannot be generated on same invoice number
Author can be reached at [email protected]
Author Bio
if a person has a petrol pump and Paid VAT on that turnover but in GST only rent income was there on that case how to calculate total turnover for e-invoice applicability?