In recent past we have seen various relaxations / amendments in regard to GST e-invoicing. These relaxations / amendments are scattered across various Notifications. Thus for benefit of our readers we have put all such relaxations and amendment at one place , with reference to the relevant Notification.
The recent relaxations and latest changes in regard to GST e-invoicing are discussed below:
1. One time relaxation for invoices issued in month of October, 2020:
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.
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 October 1, 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.
For detailed discussion on above please click here.
2. GST e-invoicing to be applicable to persons who crossed aggregate turnover of Rs. 500 Cr. in any preceding FY from 2017-18 onwards
CBIC has issued Notification No. 70/2020- Central tax dated 30th September, 2020 by which amendment has been made in Notification No. 13/2020 Central Tax, dated the 21st March, 2020 to the effect that that the GST E-invoicing will be applicable if the turnover of such taxpayer is more than 500 crores in any of the last three Financial Years. Earlier the words used were ‘a financial year’.
Thus as per earlier provisions, a person whose aggregate turnover was exceeding Rs 500 Cr in the previous financial year viz 2019-20 was only covered under GST e-invoicing. However now the criterion has been widened and in case a person has breached the turnover limit of Rs 500 Cr in any of the last three financial years viz FY 2017-18, 2018-19 or 2019-20, such a person will be have to comply with GST e-invoicing provisions.
3. Supplies for ‘exports’ are also specifically included under e-invoicing.
CBIC has issued Notification No. 70/2020- Central tax dated 30th September, 2020 by which amendment has been made in Notification No. 13/2020 Central Tax, dated the 21st March, 2020 to the effect that that the GST E-invoicing will also be applicable on exports of goods or services or both.
Thus exporters qualifying the aggregate turnover limit will also be required to do GST e-invoicing in regard to export invoices. It is amusing to note here that such amendment was carried out hours before implementation of GST e-invoicing.
4. QR code, having the Invoice Reference Number (IRN) to be part of invoice copy issued to buyer:
Rule 46 of CGST Rules, 2017 prescribes the particulars to be given in the tax invoices issued by a registered person. As under GST e-invoicing , the QR code having embedded IRN is essential, the Rule has been amended to insert a clause (q) mandating such a requirement vide Notification No.72/2020 – Central Tax dated 30-9-2020 read with Corrigendum.
Thus now QR code, having the Invoice Reference Number (IRN) should now be a part of invoice copy issued to buyer by supplier covered under GST e-invoicing.
5. In case of any contingency, Commissioner can exempt a person or a class of registered persons from e-invoicing for a specified period.
Proviso to Rule 48(4) of the CGST Rule, 2017 has been inserted by Notification No.72/2020 – Central Tax dated 30-9-2020, empowering the Commissioner on the recommendations of GST Council to exempt a person or class of persons from GST e-invoicing for a specified period , by issue of Notification.
6. Physical copy of invoice need not be carried during movement of goods:
Sub-rule (2) of rule 138A of CGST Rules, 2017 has been substituted to the affect that where e-invoicing is applicable, physical copy of invoice need not be carried (during movement of goods) and it is sufficient if the QR code having IRN is produced electronically, for verification by proper officer.
For further discussion on above please click here.
For ready reference of our readers the amended Notification No. 13/2020– Central Tax dated 21st March, 2020 which is the pillar in regard to GST e-invoicing, is given below:
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 , 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]4
- 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. 70/2020 – Central Tax dated 30th September,2020
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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.
