e-Invoice under GST
(Updated as on November 2022)

Introduction:

As per Rule 48(4) of the 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). After following above ‘e-invoicing’ process, the invoice copy containing inter alia, the IRN (with QR Code) issued by the notified supplier to buyer is commonly referred to as ‘e-Invoice’ in GST.

e-Invoice has many advantages for businesses such as auto-reporting of invoices into GST return, auto-generation of e-way bill (where required). e-Invoice facilitates standardisation and inter-operability leading to reduction of disputes among transacting parties, improving payment cycles, reduction of processing costs and thereby greatly improving overall business efficiency.

Process of generation of e-Invoice:

Registered persons will continue to create their GST invoices on their own Accounting/Billing/ERP Systems. These invoices will be reported to ‘Invoice Registration Portal (IRP)’. On reporting, IRP returns the e-invoice with a unique ‘Invoice Reference Number (IRN)’ after digitally signing the e-invoice and adding a QR Code. Then, the invoice can be issued to the receiver (along with QR Code).

All about e-Invoice and other such instruments in GST

Applicability of e-Invoice:

For registered persons whose Aggregate Annual Turnover (based on PAN) in any preceding financial year from 2017­18 onwards, is more than prescribed limit (as per relevant notification), e-Invoicing is mandatory. Further, as per Rule 48(5) of the CGST Rules, any invoice issued by a notified person in any manner other than the manner specified in Rule 48(4) of the CGST Rules, the same shall not be treated as an invoice.

Electronic invoicing system was introduced for taxpayers with Aggregate Annual Turnover of more than Rs. 500 Cr from 01st October, 2022 for B2B transactions and for export invoices vide Notification No. 13/2020-Central Tax dated 21.03.2020. The same was extended for taxpayers with Aggregate Annual Turnover of more than Rs. 100 Cr from 01st January, 2021 vide Notification No. 88/2020-Central Tax dated 10.11.2020. Further, vide Notification No. 05/2021-Central Tax dated 08.03.2021, the same has been extended for taxpayers with Aggregate Annual Turnover of more than Rs. 50 Cr from 01st April, 2021. The same has been extended for taxpayers with Aggregate Annual Turnover of more than Rs. 20 Cr from 01st April, 2022 vide Notification No. 01/2022-Central Tax dated 24.02.2022 and for taxpayers with Aggregate Annual Turnover of more than Rs. 10 Cr from 01st October, 2022 vide Notification No. 17/2022-Central Tax dated 01.08.2022.

Documents covered under e-Invoice:

(a) Invoices

(b) Credit Notes

(c) Debit Notes

when issued by notified class of taxpayers (to registered persons (B2B) or for the purpose of Exports).

Supplies 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.

Entities/sectors for which e-Invoicing is not applicable/ exempt:

(a) Special Economic Zone Units

(b) Insurers

(c) Banking companies or financial institutions, including a Non-Banking Financial Company (NBFC)

(d) Goods Transport Agency (GTA) supplying services in relation to transportation of goods by road in a goods carriage

(e) Suppliers of passenger transportation service

(f) Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens

(g) Persons registered in terms of rule 14 of CGST Rules (OIDAR)

(h) Government department

(i) Local authority

Further, the exemption from e-invoicing is with respect to the entity and not with respect to the nature of supply/ transaction.

Is e-Invoicing applicable for NIL-rated or wholly-exempt supplies?

No, e-Invoice is not required for NIL-rated or wholly-exempt supplies. In those cases, a bill of supply is issued and not a tax invoice.

Applicability of e-Invoicing for supplies involving Reverse Charge:

If the 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, e-invoicing is applicable. For example, a taxpayer (say, a Firm of Advocates having Aggregate Annual Turnover in a FY is more than Rs. 500 Cr) is supplying services to a company (who will be discharging tax liability as recipient under RCM), such invoices have to be reported by the notified person to IRP.

On the other hand, where supplies are received by notified person from (i) an unregistered person (attracting reverse charge under Section 9(4) of the CGST Act); or (ii) through import of services, e-invoicing is not applicable.

Invoice Registration Portal (IRP):

Invoice Registration Portal (IRP) is the website for uploading/ reporting of invoices by the notified persons. Vide Notification No. 69/2019-Central Tax dated 13.12.2019, ten portals were notified for the purpose of preparation of the invoice in terms of Rule 48(4) of the CGST Rules. The first Invoice Registration Portal (IRP) is active and can be accessed at: https://einvoice1. gst.gov.in/. More portals will be made available in due course.

Various modes for generation of e-Invoice:

Multiple modes are available so that taxpayer can use the best mode to generate IRN:

(a) API-based

(b) Offline Utility (freely downloadable from IRP)

GSTR 3B form Download

Our Recommendation on GST

Sr No.  Particulars
1 Registration under GST Law
2 Cancellation of Registration in GST
3 The Meaning and Scope of Supply
4 Composite Supply and Mixed Supply
5 Time of Supply in GST
6 GST on advances received for future supplies
7 Concept of Aggregate Turnover in GST
8 Non-resident taxable person in GST
9 Casual taxable person in GST
10 Input Service Distributor in GST
11 Composition Levy Scheme in GST
12 Reverse Charge Mechanism in GST
13 Tax Invoice and other such instruments in GST
14 Accounts and Records in GST
15 Credit Note in GST
16 Debit Note in GST
17 Electronic Cash/Credit Ledgers and Liability Register in GST
18 Electronic Way Bill in GST
19 Input Tax Credit Mechanism in GST
20 Transition Provisions under GST
21 Integrated Goods and Services Tax Act
22 Compensation cess in GST
23 Imports in GST Regime
24 Zero Rating of Supplies in GST
25 Deemed Exports in GST
26 Pure Agent Concept in GST
27 Job Work under GST
28 Works Contract in GST
29 Valuation in GST
30 Margin Scheme in GST
31 Provisional Assessment in GST
32 Returns in GST
33 Statement of Outward Supplies (GSTR-1) in GST
34 Refunds under GST
35 Refund of Integrated Tax paid on account of zero rated supplies
36 Refund of unutilised Input Tax Credit (ITC)
37 Advance Ruling Mechanism in GST
38 Goods Transport Agency in GST
39 GST on Charitable and Religious Trusts
40 GST on Education Services
41 GST on Co-operative Housing Societies
42 Online Information Data Base Access and Retrieval (OIDAR) Services in GST
43 GST Practitioners
44 National Anti-Profiteering Authority in GST
45 Benefits of Goods and Services Tax (GST)
46 Special Audit in GST
47 TDS Mechanism under GST
48 TCS Mechanism under GST
49 Inspection, Search, Seizure and Arrest
50 Appeals and Review Mechanism under GST
51 Recovery of Tax
(Republished with Amendment as on 16.11.2022 – Source- CBEC)

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9 Comments

  1. P MURUGAN says:

    I want to expect the opinion from the viewers that, we, manufacturer in steel, wants to buy a scrap for manufacturing, from unregistered dealers and in that case, what we should keep the documents for tax payable under reverse charge and what documents should be kept for transportation of goods ( Scrap) from unregistered dealer place to our place of manufacture business.

    Please give your opinion in this regard is highly appreciated.

  2. SWAPAN KUMAR DHAR says:

    We are Tea Manufacturing Firm having Tea Estate in Assam, We used to purchase Chamicals Fertilier, Medicines for our Hospitals, Machinery-Electricals for our Tea Factory,Labour-Staff Qtr and other various goods/contract job etc. Please let me know that whether we will get credit of all the goods purchased with GST against Sale of our Tea?

  3. Arpit Patel says:

    Dear Sir,
    Pl. clarify what will be invoice type for :Reimbursment of Exp” as “Pure Agent” and where to disclose in GSTR-1

  4. Sanjay says:

    Dear Sir,

    In case of delivery challan if owner of goods sent good to Job worker 1 and then job worker moves goods to Job worker 2 , what information needed to fill in delivery challan, whi should be consigner??

  5. RAVIPRAKASH says:

    One correction. For procurement from unregistered person the documents to be issued is invoice and not tax invoice and which is to be serially number different from tax invoice asper sec. 31(1)(f)

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