A milestone step to curb GST Tax fraud has been implemented by the Government of India. This system was implemented from 1st October 2020 for taxpayers with an aggregate turnover exceeding Rs.500 crore. It was extended to businesses with an aggregate turnover exceeding Rs.100 crore from 1st January 2021. On 8th March 2021, the CBIC also notified applicability of the e-invoicing system from 1st April 2021 for businesses with total turnover ranging between Rs.50 crore to Rs.100 crore. Turnover for e-invoicing will include the turnover of all GSTINs under a single PAN across India.

Meaning of E- Invoicing

Electronic invoicing (e-Invoicing) is the exchange of the invoice document between a supplier and a buyer in an integrated electronic format. Traditionally, invoicing, like any heavily paper-based process, is manually intensive and is prone to human error resulting in increased costs and processing lifecycles for companies.

No, it is mandatory for Business whose aggregate turnover exceeds Rs.500 crore limit in any of the previous financial years from 2017-18 to 2019-20. From 1st January 2021, e-invoicing became applicable to businesses exceeding the Rs.100 crore turnover limit in any of the financial years between 2017-18 to 2019-20. Likewise, it was extended to businesses with a total turnover of more than Rs.50 crore from 1st April 2021.

Following Organaisation are excluded from issuing of E-Invoicing:-

  • A government department and Local Authority (excluded via CBIC Notification No. 23/2021 – Central Tax)
  • 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 service.
  • An SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax).
  • An insurer or a banking company or a financial institution, including an NBFC

  • Easily generation of E-way Bill.
  • Automate tax Filling Process
  • Real time tracking
  • Ease in filling of GSTR-1
  • Minimum effort for data reconciliation between the books and GST returns filed.
  • Increase efficiency in tax administration by deleting fake invoices

No, IRN is not a replacement to invoice number of ERP, one needs to follows its own invoice number normally, IRN would be generated by IRP and would be unique with 64 characters.

Yes, QR code is mandatory and it would be embedded with IRN in it.

Tax invoices, Credit Notes, Debit notes and Export invoice

No, e-invoicing is not applicable to invoices issued by Input Service Distributor (ISD).

Yes, in case of export of goods or services then e-invoice to be raised.

No, there is no requirement to issue duplicate /triplicate copies of invoices when e-invoice is generated [Rule 48(6) eliminates such requirement when e-invoice is issued]

No, It has to be cancelled in total. No partial cancellation of reported e-invoice allowed.

No, e-invoicing is not applicable to nil-rated or wholly-exempt supplies as in these cases, only a bill of supply is issued and not a tax invoice.

The maximum number of line items allowed per e-Invoice is 1000.

  • GSP based,
  • API-based,
  • Web-based,
  • Offline tool based

No, once an IRN is cancelled, the same invoice number cannot be used again to generate another invoice.

Yes, if such suppliers who sell through an e-commerce entity are notified persons who are supposed to report invoices under Rule 48(4), then the e-commerce operator can generate e-invoices on behalf of them

Acknowledgment number with date Invoice and QR code digitally signed by the IRP

Yes, An Invoice without QR code along with IRN embedded would be invalid under GST and transportation of goods without a valid tax invoice could be a reason for detention of goods.

No, as per Schedule III of CGST/SGST Act. These transactions are neither supply of goods nor a supply of services.

Not applicable for import Bills of Entry.

No, SEZ Developers are not exempted from E-invoicing as the exclusion clearly mentions only SEZ unit, therefore SEZ developer need to follow e-invoicing procedure.

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