The e-Invoicing
system under GST was implemented for taxpayers with the respective aggregate
turnover as mentioned below in the respective dates.
|
Effective
from |
Aggregate
Turnover exceeding Rs. |
|
1st
October 2020 |
Rs. 500
Crores |
|
1st
January 2021 |
Rs. 100
Crores |
|
1st
April 2021 |
Rs. 50
Crores |
|
1st
April 2022 |
Rs. 20
Crores |
|
1st
October 2022 |
Rs. 10
Crores |
|
1st
August 2023 |
Rs. 5
Crores |
Aggregate turnover
for e-invoicing will include the turnover of all GSTINs under a single PAN
across India.
What is e-invoicing?
Electronic invoicing or e-Invoicing is a system
of raising invoices, under which invoices generated by one software can be read
by any other software, eliminating the need for any fresh data entry or errors.
In simpler words, it is an invoice generated using a standardised format, where
the electronic data of the invoice can be shared with others, thus ensuring the
interoperability of data.
CGST Rule 48 lays down the rules for the applicability and generation of
e-invoices.
What is the time limit for e invoice?
Until 30th April 2023, there was no time limit
fixed by the GST systems to generate e-invoices. From 1st May 2023 onwards,
taxpayers with Annual Aggregate Turnover equal to or more than INR 100 crore
must generate e-invoices for tax invoice and credit-debit notes within 7 days
of invoice date, failing which the invoices/Credit Notes will be non-compliant.
There is no defined time
limit or period within which e invoice must be
generated for the rest. Hence, for such taxpayers, it is advised to create e
invoice on or after the invoice date but before the filing of GSTR-1 returns.
An exporter either
exports under LUT / bond without paying tax or exports by paying tax and later
claiming a refund of it.
Exports are
classified into direct exports, deemed exports, and exports from SEZ units or
SEZ developers. e-Invoicing is applicable to export transactions to automate
the refund mechanism to exporters under the following cases:
As per the CBIC notification on the 10th May
2023, the 6th phase of e-invoicing, applicable to businesses with a turnover
exceeding Rs.5 crore in any financial year with effect from 1st August 2023.
Following supplies are presently covered under e –invoice:
Supplies to registered persons (B2B), Supplies to SEZs (with/without
payment), Exports (with/without payment), Deemed Exports, by notified class of
taxpayers are currently covered under e-invoicing.
At the time of registration on the IRP as an exporter, one needs to
select the type of exporters such as regular export, deemed export, supplies
from SEZ unit or SEZ developer. Exporters can use the existing invoice format
for e-invoicing along with additionally capturing the QR code.
However, e-invoicing shall not be applicable to
the following categories of registered persons, irrespective of the turnover,
as notified in the CBIC Notification No.13/2020. In those cases, a bill supply is issued and
not a tax invoice.
Following sector or entities are exempted under E- invoice:
ü Special Economic Zone Units
ü Insurers Banking Companies or financial institutions, including a
Non-Banking Financial Company(NBFC)
ü Goods Transport Agency (GTA)
ü Suppliers of passenger transportation services
ü Supplies of services by way of admission to exhibition of cinematograph
films in multiplex screens
ü Person registered in terms of rule 14 of CGST rules (OIDAR)
ü Government Department Local Authority
Amendment and Cancellation of E-Invoice:
If the registered person wishes to make any
changes in the E-Invoice, the only option available to modify or cancel the
invoices is to generate Debit/Credit Notes. The e-invoice portal does not allow
for amendment of e-invoices either. The registered person will not be allowed
to cancel an e-invoice after the passes of 24 hours since the issuance of the
said e-invoice.
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