E-Invoice GST

During its 37th meeting, which took place on September 20, 2019, the GST Council made a recommendation to implement electronic invoices (also known as "e-invoices") in GST in a progressive way. E-invoicing was first made applicable as of October 1, 2020, but only for registered businesses with aggregate revenue of Rs. 500 crores or more.

Since then, the total turnover has been gradually decreasing in order to accommodate the greatest number of taxpayers for the implementation of e-invoicing in the following manner:

Notes: 

• E-invoicing regulations become effective beginning with the 2017–18 fiscal year when the aforementioned aggregate turnover threshold limitations are crossed in any of the previous financial year(s). Therefore, the total turnover limit for the current fiscal year should not be taken into consideration.

• Even if their annual aggregate turnover is greater than the specified limit, certain entities are exempt from the obligation to generate electronic invoices. These entities include SEZ units (but not developers), insurers or banking companies or financial institutions, government departments or local authorities, passenger transport service providers, and invoicing in cases where services are rendered in the form of admission to the exhibition of cinematograph films in multiplex theatres.

• Only applies to taxable sales of goods or services made between businesses (B2B) in DN/CN export transactions.

• Not Applicable for Business-to-Consumer (B2C) Supplies, Exempted Supplies (Bill of Supply), Receipt Voucher (on Advance Received for Supply of Services), Refund Voucher (Refund of Advance Money Received), Payment Voucher & Self-Invoice (for RCM Liability Received from an Unregistered Person), and ISD Invoice.

LIST OF COMPLIANCE TO BE FOLLOWED

The registered person who is required to use e-invoicing must first generate a tax invoice with specified particulars according to e-schema INV-01 using the taxpayer's own account and billing software, then convert the tax invoice into a JSON file, and finally, upload the file to the dedicated Invoice Registration Portal ("IRP") that was launched by the government. 

After that, IRP will generate a one-of-a-kind e-invoice reference number along with a Quick Reference ("QR") Code and a digitally signed JSON file, which it will then send to the concerned supplier. Additionally, IRP will push the data to the GST Portal for auto-population of date in GSTR-1 (outward supply statement), as well as the E-waybill portal for the generation of an e-way bill.

Shivani Gupta

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