GST E-Invoice Rules modified/amended
w.e.f. 1st April 2022
Shahdab Khan
Advocate
E-Invoice under GST
regime refers to a system in which B2B invoices are authenticated
electronically by GSTN for further use on the common GST portal. Under the
electronic invoicing system, an identification number will be issued against
every invoice by the Invoice Registration Portal (IRP) to be managed by the GST
Network (GSTN).
E-invoicing is a
technique under which invoices are electronically generated in a prescribed
format Aggregate turnover for e-invoicing will include the turnover of all
GSTINs under a single PAN across India. E-invoicing under GST regime in India,
has been implemented in a phased manner in India, since October 1, 2020.
E-invoicing allows
real time tracking of invoices prepared by a supplier, reducing scope of
frauds.
Key Highlights
- From April 1, GST e-invoice is
mandatory for businesses with Rs. 20 crore turnover.
- The CBIC (Central Board of
Indirect Taxes and Customs) has reduced the turnover limit for mandatory
issuance of e-invoice (electronic invoice) under the goods and services
Tax (GST) to INR 20 Cr. from the earlier prescribed limit of INR 50 Cr.
- This step is expected to affect
smaller businesses, who will now have to mandatorily issue electronic
invoices.
- On failure to produce a valid
invoice, the input tax credit (ITC) on the same cannot be availed by the
recipient, besides attracting penalties.
- This amendment seems to be
tailored to suit the Government's digital economy agenda.
- Notification 01/2022 which is
published on 24th February 2022, it is said by the Central Board of
Indirect Taxes & Custom that the minimum threshold is going to be Rs.
20 Crore from 01 April 2022.
- As a result, small businesses,
mainly with Rs. 20 crore turnover, who usually issue informal sale
invoices or "kacha bills" will have to mandatorily issue
e-invoices.
- It must be noted that only a
registered e-invoice with Invoice Reference Number (IRN) is considered to
be valid and non-adherence will result in non-compliance.
- This is required to avail of
input tax credit (ITC).
- The new system, which takes
effect on 1 April, will add 180,000 GST identification numbers (GSTINs),
up from the existing 240,000, to around 420,000, the official said on
condition of anonymity.
Exemption from
e-invoicing
E-invoicing shall not
be applicable to the following categories of GST registered persons
irrespective of the turnover:
- Special Economic Zone Units
(excluded via CBIC Notification No. 61/2020 - Central Tax)
- insurer or a banking company or
a financial institution, including an NBFC
- Goods Transport Agency (GTA) -
supplying services in relation to transportation of goods by road in a
goods carriage
- Suppliers of passenger
transportation service
- Suppliers of services by way of
admission to the exhibition of cinematograph films in multiplex screens.
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