E -invoicing was made mandatory from 1st October, 2020, for registered persons having aggregate annual turnover at PAN level of more than Rs 500 Crore as per Notification No 61/2020-Central Tax dated 30th July 2020. Subsequently, in the next phase, the e-invoicing was extended to businesses with an aggregate turnover exceeding Rs.100 crore from 1st January 2021 as per Notification No. 88/2020 dated 10th November 2020.
Later, the CBIC notified vide Notification No. 5/2021 dated 8th March 2021 that e-invoicing will be applicable from 1st April 2021 for businesses with a turnover of more than Rs.50 crore. It may be noted here that the taxpayers must comply with e-invoicing if the turnover exceeds the specified limit in any financial year from 2017-18 to 2019-20. Also, the aggregate turnover here will include the turnover of all GSTINs under a single PAN across India.
The CBIC vide Notification No. 01/2022 – Central Tax dated 26th February 2022 further amended Notification No.13/2020 – Central Tax dated 21st March 2020, and mandated that from 1st April, 2022 the e-invoicing is mandatory for the taxpayers having turnover of more than Rs 20 crore.
The CBIC has now issued Notification No. 17/2022–Central Tax dated 1st August 2022 to amend Notification No. 13/2020 – Central Tax, dated 21st March 2020 to decrease the e-Invoicing aggregate turnover limit from 20 crore to 10 crore w.e.f. 1st October 2022.
However, irrespective of the turnover, e-Invoicing is not be applicable to the following categories of registered persons, as notified vide Notification No.13/2020 – Central Tax dated 21st March 2020
- 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
- An SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax)
- A government department and Local authority (excluded via CBIC Notification No. 23/2021 – Central Tax)
Also e-invoicing is not applicable to invoices issued by Input service distributors as such invoices are for distribution of ITC and not for outward supplies.
The Notification can be read/downloaded at: https://egazette.nic.in/WriteReadData/2022/237796.pdf
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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.
