Revised Schema for GST e-Invoice issued, turnover limit for e-invoice applicability hiked to Rs 500 Cr.

Issuance of GST E-invoice was made part of GST law vide Notification No. 68/2019-CT dated 13.12.2019 whereby Rule 48(4) of the CGST Rules, 2017 was inserted. As per said Rule the invoice shall be prepared by notified class of registered persons, 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.

The schema / format of FORM GST INV-01 was also prescribed vide Notification No. 02/2020 – Central Tax, dated 01.01.2020.

Further vide Notification No. 13/2020– CT dated 21.03.2020 in supersession of Notification No. 70/2019-CT dated 13.12.2019, the Govt notified registered person, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules , whose aggregate turnover in a financial year exceeds Rs 100 crore, as a class of registered person who shall prepare invoice and other documents, in terms of rule 48(4) of the said rules in respect of supply of goods or services or both to a person registered under GST law viz B2B supplies. It was also stated in said Notification that it shall come into force from the 1st October, 2020 as against the earlier prescribed date of 1st April,2020.

Thus as per above, e-invoice is mandatory w.e.f. 01.10.2020 for all tax payers (other than insurer, banking co., FI, NBFC, GTA, supplier of passenger transportation service, multiplex screens) having aggregate turnover in a financial year exceeding Rs 100 crore.

Amendment made in e-invoicing provisions:

Notification No. 61/2020–CT dated 30.07.2020 has been issued whereby some amendments as discussed below has been made in Notification No. 13/2020– CT dated 21.03.2020. Further vide Notification No. 60/2020–CT dated 30.07.2020 new schema / format of invoice viz FORM GST INV-01 has also been issued. Let us discuss above as under;

Turnover limit hiked to Rs 500 Crore

Vide Notification No. 61/2020–Central Tax dated 30.07.2020 the turnover limit for the e-invoicing to become mandatory has been hiked from Rs 100 crore to Rs 500 crore.

SEZ unit not required to issue e-invoice

As per Notification No. 13/2020– CT dated 21.03.2020 registered person referred to in sub-rules (2), (3), (4) and (4A) of rule 54 are not required to issue e-invoice. Accordingly insurer, banking company, FI, NBFC, GTA, supplier of passenger transportation service, multiplex screens are immune to the provisions of e-invoices. This relaxation has now also been extended to Special Economic Zone Unit vide Notification No. 61/2020–Central Tax dated 30.07.2020.

Accordingly e-invoice is now mandatory w.e.f. 01.10.2020 for all tax payers (other than insurer, banking co., FI, NBFC, GTA, supplier of passenger transportation service, multiplex screens and SEZ Unit) having turnover in a financial year exceeding Rs 500 crore.

Revised Schema / format of invoice in FORM GST INV-01 issued

Vide Notification No. 60/2020–CT dated 30.07.2020 revised schema (version 1.1) of invoice viz FORM GST INV-01 has also been issued.

The e-invoice schema contains both mandatory and optional fields. The mandatory fields are those that must be compulsorily there for an invoice to be valid under the e-invoice standard. The optional fields are those that may be incorporated as per the business needs. All the mandatory fields are to be filled in to register an e-invoice on the invoice registration portal (IRP). A mandatory field without any value can be reported as NIL.

Needless to mention that E-invoice is a standard format of the invoice mandated for notified GST registered suppliers. A taxpayer should ensure that the set parameters as given in the schema are supported by the accounting/billing software used for generation of the invoice. Thereafter, such invoice generated will be called the e-invoice.

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TW Editorial Team

TW Editorial Team comprises of team of experienced Chartered Accountants and Advocates devoted to spread the knowledge of GST amongst the various stakeholders.