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-

1. Invoices

2. Credit Notes

3. Debit Notes

4. Export

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:

  • An insurer or a banking company or a financial institution, including an NBFC
  • A Goods Transport Agency (GTA)
  • A registered person supplying passenger transportation services
  • A registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex services.
  • Input Service Distributor.
  • An SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax)

B) Transaction Level:-

  • E-Invoicing is not applicable for import Bills of Entry.
  • Business to consumer Transactions.
  • Non-GST Supplies (Alcoholic Liquor, Petrol and other).

C) Documents Level: – Following Documents that not be covered under E-Invoicing Systems are as Follows:-

  • Bill of Supply
  • Self-Invoice in case of RCM u/s 9(4)
  • Delivery Challan
  • Advance Receipts Voucher.

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.

E-Invoicing System Under GST Act. 2017 if Turnover more than 20 cr

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

GSP based.

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).

2. Notification No. 69/2019 Dt. 13-12-2019

Notified 10 Common Goods and Services Tax Electronic Portals for the purpose of preparation of invoice in terms of rule 48 (4)

3. Notification No. 70/2019 Dt. 13-12-2019

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)

4. Notification no. 2 of 2020 Dt. 1-1-2020

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)

6. Notification No. 60/2020 Dt. 30-7-2020

  • Central Goods and Services Tax (Ninth Amendment) Rules, 2020
  • New form substituted for GST INV-01 (i.e. notified revised Schema/format for e-invoice)

7. Notification No. 61/2020 Dt. 30-7-2020

  • Notification No. 13 of 2020 Dt. 21-3- 2020
  • Special Economic Zone units also excluded from e-invoicing mandate
  • Aggregate Turnover of registered persons (required to prepare invoice in terms of Rule 48(4)) enhanced to Rs. 500 Cr.

8. Notification No. 70/2020 Dt. 30-9-2020

  • The words “a financial year” in notification 13/2020 Dt. 21-3-2020 substituted with “any preceding financial year from 2017-18 onwards
  • Invoices for exports were also included

9. Notification No. 72/2020 Dt. 30-9-2020

  • In rule 46, after clause (q), below clause is inserted: “(r) Quick Reference code, having embedded Invoice Reference Number (IRN) in it, in case invoice has been issued in the manner prescribed under sub-rule (4) of rule 48.”
  • In rule 48, in sub-rule (4), below proviso was inserted: “Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt a person or a class of registered persons from issuance of invoice under this sub-rule for a specified E-INVOICE – FAQ (VERSION 1.3) 4 of 21 Period, subject to such conditions and restrictions as may be specified in the said notification.”
  • In rule 138A, for sub-rule (2), below sub-rule was substituted: “(2) In case, invoice is issued in the manner prescribed under sub rule (4) of rule 48, the Quick Reference (QR) code having an embedded Invoice Reference Number (IRN) in it, may be produced electronically, for verification by the proper officer in lieu of the physical copy of such tax invoice.”

10. Notification No. 05/2021 Central Tax dated 08/03/2021

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)

11. Notification No. 01/2022 Central Tax dated 24/02/2022

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).

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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4 Comments

  1. CA. C V SURYAM says:

    Please correct in sl. no.8 of your article i.e., Notification No.70/2020-CT as “any preceding financial year from 2017-18 onwards” in the place of “any financial year from 2017-18 onwards”.

  2. CA Sumit Bharadia says:

    Very Information. Please Correct this- Notification for Turnover above 20 Crores is 01/2022-Cental Tax, But the table mentions wrong Notification Number(01/2021-Central Tax) and Links to wrong Notification.

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