E-Invoicing System under GST Act. 2017
Background of E-Invoicing under GST
E-Invoicing is being implemented in a phase manner since October 2020. The history of E-Invoicing is as under: –
|S. No.||Notification No.||Turnover||Effective Date|
|1.||61/2020 – Central Tax||500 Crore||01/10/2020|
|2.||88/2020 – Central Tax||100 Crore||01/01/2021|
|3.||05/2021 – Central Tax||50 Crore||01/04/2021|
|4.||01/2022 – Central Tax||20 Crore||01/04/2022|
2. Update as on 24th February 2022
The CBIC has notified that e-invoicing will be applicable from 1st April 2022 for businesses with a turnover of more than Rs.20 crores (in any financial year from FY 2017-18 onwards) Notification No. 01/2022 Central Tax dated 24/02/2022 for business-to-business transaction. (Change in Notification no. 13/2021 Central Tax Dated 01/05/2021).
3. The documents that will be covered under e-Invoicing system are as follows-
2. Credit Notes
3. Debit Notes
5. Any other document as notified under GST law to be reported as e-invoice by the creator of the document
4. Exemption form E-Invoices under GST-
A) Entity Level: – Irrespective of the turnover, e-Invoicing shall not be applicable to the following categories of registered persons for now, as notified in CBIC Notification No.13/2020 – Central Tax:
B) Transaction Level:-
C) Documents Level: – Following Documents that not be covered under E-Invoicing Systems are as Follows:-
5. Amendment / cancellation of e-invoices
1. Can an e-Invoice be cancelled partially/fully?
An e-Invoice cannot be partially cancelled, it has to be cancelled fully. Once cancelled, it will need to be reported into the IRN within 24 hours. A cancellation done after 24 hours cannot be done on the IRN and needs to be manually cancelled on the GST portal before the returns are filed.
2. How can an e-Invoice be amended?
All amendments to an e-invoice can be made only on the GST Portal.
6. What are the modes available for getting e-Invoices Registered?
Multiple modes will be made available for getting e-Invoices registered on the Invoice Registration Portal (IRP). Some of the proposed modes are-
1. Web based,
2. API based,
3. Offline tool based and
List of all Notification issued by CBIC in relation to E-Invoices System
1. Notification No. (Central Tax) Key Contents 68/2019 Dt. 13-12-2019
Central Goods and Services Tax (Eighth Amendment) Rules Inserted below new sub-rules in Rule 48 of CGST Rules, 2017: (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. E-INVOICE – FAQ (VERSION 1.3) 3 of 21 EE-
(6) The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the manner specified in sub-rule (4).
Notified 10 Common Goods and Services Tax Electronic Portals for the purpose of preparation of invoice in terms of rule 48 (4)
Notified registered person, whose aggregate turnover in a financial year exceeds one hundred crore rupees, as a class of registered person who shall prepare invoice in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person; notification to come into force from the 1st day of April, 2020 (This notification superseded by 13 of 2020 Dt. 21-3-2020)
Substituted Form GST INV-1 as e-invoice schema (Schema further amended vide Notification 60/2020 Dt. 30-7-2020)
5. Notification No. 13 of 2020 Dt. 21-3- 2020 (in suppression of 70/2019 Dt. 13-12- 2019)
E-invoicing to start from the 1st October, 2020;
Notifies registered persons, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in a financial year exceeds Rs. 100 Cr., as a class of registered person who shall prepare invoice and other prescribed documents, in terms of sub-rule (4) of rule 48 of CGCT Rules, 2017, in respect of supply of goods or services or both to a registered person. (Further amended by 61/2020 Dt. 30-7-2020)
The CBIC has notified that e-invoicing will be applicable from 1st April 2021 for businesses with a turnover of more than Rs.50 crores (in any financial year from FY 2017-18 onwards)
The CBIC has notified that e-invoicing will be applicable from 1st April 2022 for businesses with a turnover of more than Rs.20 crores (in any financial year from FY 2017-18 onwards).
54. Tax invoice in special cases.-
(2) Where the supplier of taxable service is an insurer or a banking company or a financial institution, including a non-banking financial company, the said supplier [may] issue a [consolidated] tax invoice or any other document in lieu thereof, by whatever name called [for the supply of services made during a month at the end of the month], whether issued or made available, physically or electronically whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as mentioned under rule 46. [Provided that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of a consolidated tax invoice or any other document in lieu thereof in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000).]
(3) Where the supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage, the said supplier shall issue a tax invoice or any other document in lieu thereof, by whatever name called, containing the gross weight of the consignment, name of the consigner and the consignee, registration number of goods carriage in which the goods are transported, details of goods transported, details of place of origin and destination, Goods and Services Tax Identification Number of the person liable for paying tax whether as consigner, consignee or goods transport agency, and also containing other information as mentioned under rule 46.
(4) Where the supplier of taxable service is supplying passenger transportation service, a tax invoice shall include ticket in any form, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as mentioned under rule 46.
[Provided that the signature or digital signature of the supplier or his authorised representative shall not be required in the case of issuance of ticket in accordance with the provisions of the Information Technology Act, 2000 (21 of 2000).]
[(4A) A registered person supplying services by way of admission to exhibition of cinematograph films in multiplex screens shall be required to issue an electronic ticket and the said electronic ticket shall be deemed to be a tax invoice for all purposes of the Act, even if such ticket does not contain the details of the recipient of service but contains the other information as mentioned under rule 46: Provided that the supplier of such service in a screen other than multiplex screens may, at his option, follow the above procedure.]
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