GST e-invoicing means creation of GST invoices by tax payers on their own Accounting / Billing / ERP systems and thereafter uploading the specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP).
Thereafter the IRP returns the e-invoice with a unique Invoice Reference Number (IRN) after digitally signing the e-invoice and adding a QR code. The, the invoice can be issued to the receiver (along with QR Code). A GST invoice will be valid only with a valid IRN.
As per Rule 48(4) of the CGST Rules, 2017 read with Notification No. 68/2019 – Central Tax Dated 13-12-2019, 13/2020-Central Tax dated 21-3-2020 & 61/2020 – Central Tax dated 30-7-2020 and Notification No. 70/2020- Central tax dated 30-9-2020 registered persons having turnover exceeding Rs 500 Crore in any of the last three Financial Years viz FY 2017-18, 2018-19 or 2019-20, has to do GST e-invoicing from 1st October,2020 in respect of supplies to registered persons (B2B), supplies to SEZ (with / without payment), Exports (with / without payment) , Deemed Exports, by notified class of tax payers. It may be noted that e-invoicing is not applicable for import Bill of Entry.
However SEZ units including Free Trade & Warehousing Zones (SEZ developers not exempt) , Insurer, banking companies or financial institution, including NBFC, GTA, supplier of passenger transportation service and Multiplexes are exempt from the e-invoicing mandate.
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.
Further keeping in view the hardships faced by the taxpayers due to COVID-19 lockdown and as some of these taxpayers are still not ready, as a last chance, Government had given relaxation vide Notification No. 73/2020- Central Tax dated 01-10-2020 that invoices raised by notified taxpayers during October, 2020 without following e-invoice procedure (i.e. uploading invoice details on e-invoice portal (IRP), obtaining IRN and issuing invoice with QR Code) will be deemed to be valid and no penalty will be there if the IRN for such invoices is obtained within 30 days of date of invoice.
GST e-invoicing for taxpayers having turnover > Rs 100 Cr from Jan,1: Notification amended
Amendment has been made in GST e-invoicing Notification No. 13/2020-Central Tax dated 21-3-2020 vide Notification No. 88/2020- Central Tax dated 10-11-2020 vide which the requirement of GST e-invoicing will be extended to tax payers having aggregate turnover exceeding Rs 100 Crore in any of the last three Financial Years viz FY 2017-18, 2018-19 or 2019-20.
It may further be noted that such tax payers will come under ambit of GST e-invoicing with effect from 1st January, 2021 as same has specifically been mentioned in the Notification.
Notification No. 13/2020– Central Tax dated 21st March, 2020 (As amended)
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection(i)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Notification No. 13/2020– Central Tax
New Delhi, the 21st March, 2020
G.S.R. …..(E).— In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred as said rules), the Government on the recommendations of the Council, and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 70/2019 – Central Tax, dated the 13th December, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 926 (E), dated the 13th December, 2019, except as respects things done or omitted to be done before such supersession, hereby notifies registered person, other than [a Special Economic Zone unit and]1 those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in [any preceding financial year from 2017-18 onwards]2 exceeds [five hundred crore rupees]3 / [one hundred crore rupees]4 , as a class of registered person who shall prepare invoice and other prescribed documents, 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 [or for exports]5
This notification shall come into force from the 1st October, 2020.
[F. No.20/06/03/2020-GST]
(Pramod Kumar)
Director, Government of India
- Inserted by Notification No. 61/2020 – Central Tax dated 30th July,2020.
2. Substituted for ‘a financial year’ vide Notification No. 70/2020 – Central Tax dated 30th September,2020.
3. Substituted for one hundred crore rupees by Notification No. 61/2020 – Central Tax dated 30th July,2020.
4.Inserted by Notification No. 88/2020 – Central Tax dated 10th November,2020 w.e.f. 1st January,2021.
5. Inserted by Notification No. 70/2020 – Central Tax dated 30th September,2020
READ 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.
