Rule 48(4) of the CGST Rules, 2017 deals with the GST e-invoicing and states that 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 CGST Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.
GST INV-01 must be uploaded into the portal so as to generate the Invoice Reference Number (IRN), which is an alternative to the conventional system of invoicing wherein an original invoice is maintained by the buyer, a duplicate is issued to the transporter, and triplicate to the seller.
GST E -invoicing was mandatory from 1st October, 2020, for registered persons (subject to certain exceptions) having aggregate annual turnover at PAN level of more than Rs 500 Crore.
Also Read: GST E-invoicing: Answers to 10 FAQs you should know
A one time relaxation in implementation of GST e-invoicing was announced vide Press Release dated 30.09.2020 wherein it was stated that in the initial phase of implementation of e-invoice, it has been decided that the invoices issued by such taxpayers during October 2020 without following the manner prescribed under rule 48(4), shall be deemed to be valid and the penalty leviable under section 122 of the CGST Act, 2017, for such non-adherence to provisions, shall stand waived if the Invoice Reference Number (IRN) for such invoices is obtained from the Invoice Reference Portal (IRP) within 30 days of date of invoice.
Notification No. 73/2020- Central Tax dated October 1, 2020 issued:
Pursuant to the Press Release dated September 30, 2020, the CBIC vide Notification No. 73/2020- Central Tax dated October 1, 2020 has notified that the registered persons required to prepare the tax invoice in the manner specified under Rule 48(4) of the CGST Rules, 2017 who have prepared tax invoice in a manner other than the said manner, shall during the period from October 1, 2020 to October 31, 2020, obtain an Invoice Reference Number (“IRN”) for such invoice by uploading specified particulars in FORM GST INV-01 on the Common GST Electronic Portal, within 30 days from the date of such invoice, failing which the same shall not be treated as an invoice.
Illustration:
In case a registered person has issued an invoice dated 3rd October, 2020 without obtaining IRN but reports the details of such invoice to IRP and obtains the IRN of the invoice on or before 2nd November, 2020 then it shall be deemed that the provisions of rule 48 (4) of the CGST Rules, 2017 are complied with and thus penalty imposable under section 122 of the CGST Act, 2017 shall also stand waived.
It may be noted here that vide aforesaid Notification no such relaxation is available for the invoices issued from 1st November 2020 and such invoices issued in violation of rule 48(4) of the CGST Rules 2017 would not be valid and all the applicable provisions of CGST Act and Rules would apply for the said violation.
READ/ DOWNLOAD NOTIFICATION:
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
