What is ‘e-invoicing’?

An electronic invoice (e-invoice) is an invoice that is issued, transmitted, received, processed and stored electronically using specific document formats. As per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN).

For which businesses, e-invoicing is mandatory?

For Registered persons whose aggregate turnover (based on PAN) in any preceding financial year from 2017-18 onwards, is more than prescribed limit (From 1 Oct, 2022 the limit is RS. 10 Cr) e-invoicing is mandatory.

Following documents are presently covered under e –invoicing:

  1.  Invoices
  2.  Credit Notes
  3.  Debit Notes,

when issued by notified class of taxpayers (to registered persons (B2B) or for the purpose of Exports) are currently covered under e-invoice.

Following supplies are presently covered under e –invoice:

Supplies to registered persons (B2B), Supplies to SEZs (with/without payment), Exports (with/without payment), Deemed Exports, by notified class of taxpayers are currently covered under e-invoicing.

No, E-Invoice is not required for Nil-rated or wholly-exempted supplies. In those cases, a bill supply is issued and not a tax invoice.

Following sector or entities are exempted under E- invoice:

  • Special Economic Zone Units
  • Insurers
  • Banking Companies or financial institutions, including a Non-Banking Financial Company(NBFC)
  • Goods Transport Agency (GTA)
  • Suppliers of passenger transportation services
  • Supplies of services by way of admission to exhibition of cinematograph films in multiplex screens
  • Person registered in terms of rule 14 of CGST rules (OIDAR)
  • Government Department
  • Local Authority

E-Invoice in case of Supplies Involving Reverse Charge:

In case of invoice issued by notified person is in respect of supplies made by him but attracting reverse charge under section 9(3) of the CGST Act, and turnover of such notified person crosses the limit of applicability of E-invoice (i.e. Rs. 10 Cr), such invoices have to be reported by the notified person to IRP.

Amendment and Cancellation of E-Invoice:

If the registered person wishes to make any changes in the E-Invoice, the only option available to modify or cancel the invoices is to generate Debit/Credit Notes. The e-invoice portal does not allow for amendment of e-inovices either. The registered person will not be allowed to cancel an e-invoice after the passes of 24 hours since the issuance of the said e-invoice.

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Disclaimer:- The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.

Author Bio

Qualification: CS
Company: Everest Tax Consultancy
Location: Sikar, Rajasthan, India
Member Since: 08 Jan 2023 | Total Posts: 5
Mr. Yogesh Verma is a qualified Company Secretary and he is practicing in field of Goods and Service Tax as a proprietor in Everest Tax Consultancy Firm from last five year. He is providing consultancy services to claim GST Refund, compliances of GST in case of Import-Export, LUT and other GST rela View Full Profile

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