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.
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.
Latest Notification on GST e-invoicing
Now, the CBIC vide Notification No. 01/2022 – Central Tax dated 26th February 2022 has amended Notification No.13/2020 – Central Tax dated 21st March 2020, and has reduced the turnover requirement for GST e-invoicing as under:
- W.e.f. April 1, 2022, the class of registered person are mandatorily required to issue e-invoice, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds Rs 20 crores.
Accordingly from 1st April, 2022 the e-invoicing will be mandatory for the taxpayers having turnover of more than Rs 20 crore.
It is pertinent to mention here that recently, the former Finance Secretary Ajay Bhushan Pandey has said that, e-invoicing replaces the physical invoice and will soon replace the existing e-way bill system, and taxpayers will not have to generate separate e-way bills. Further, he had also stated that the government will roll out the e-invoicing system for all business-to-business transactions under GST regime soon that will replace physical invoices.
Thus we can say that the limit of turnover for mandatory GST e-invoicing will reduced further in future.
Read / Download Notification by clicking at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-01-central-tax-english-2022.pdf
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