The Central Board of Indirect Taxes and Customs (CBIC) has vide Notification No. 05/2021- Central Tax dated 8th March, 2021 reduced the aggregate turnover limit for the purpose of applicability of GST E-invoicing from Rs.100 Crores to Rs.50 Crores with effect from April 1, 2021.
The Board has vide above Notification has amended the first para of notification No. 13/2020 – Central Tax, dated the 21st March, 2020. The amendment is to reduce the aggregate turnover limit from Rs 100 crore to Rs 50 crore.
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.
Later amendment was 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 was 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 from 1st January,2021.
Now vide Notification No. 05/2021- Central Tax dated 8th March, 2021 the aggregate turnover limit has further been reduced to Rs 50 crore from 1st April,2021.
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CA. Mohammad Salim is an ICAI award winning Chartered Accountant having rich experience of more than 20 years in the field of indirect taxes. He is the Member, Indirect Taxes Committee of PHD Chamber of Commerce and Industry. He is author of four successful books on GST published by Taxmann Publication and is also GST expert on taxmann portal.
