E-Invoicing Under GST: Applicability of E-Invoicing

E-Invoicing Under GST: Applicability of E-Invoicing

What documents are presently covered under e-invoicing?

Following documents are presently covered under e-invoicing:

  • Invoices
  • Credit Notes
  • Debit Notes

issued by the notified class of taxpayers.

Though different documents are covered, but for easy reference and easy understanding, the system is referred as “e-invoicing”.

What supplies are presently covered under e-invoicing?

Following supplies are presently covered under e-invoicing:

  • Supplies to registered persons (B2B)
  • Supplies to SEZ (with/ without payment)
  • Exports (with/ without payment)
  • Deemed exports

made by the notified class of taxpayers.

Business to Consumer (B2C) supplies can also be reported by notified persons?

No. This will be brought under e-invoicing in the next phase.

Is e-invoicing applicable for Nil-Rated or Wholly Exempted supplies?

No. Because in these cases, a bill of supply is issued and not a tax invoice.

Doubts are raised by some professionals that is e-invoicing applicable on export of exempted goods? The answer is Yes.

Whether the financial/ commercial credit notes also need to be reported to IRP?

No. Only credit/ debit notes issued under section 34 of the CGST/ SGST Act need to be reported to IRP.

Can you give some illustrations on applicability of e-invoicing on the basis of turnover threshold?

Yes. The illustrations are as under:-

Illustration-1:

Financial YearTurnover (in crores)Applicable from which year?
2017-18700No
2018-19420No
2019-20250No
2020-21450Yes [w.e.f. 01/10/2020] *
2021-22100Yes

*As in F.Y. 2017-18, turnover is more than Rs. 500 Crores, so applicable from 01/10/2020.

Illustration-2:

Financial YearTurnover (in crores)Applicable from which year?
2017-1888No
2018-1967No
2019-2079No
2020-21580No*
2021-2250Yes [w.e.f. 01/04/2021]

*As in Previous F.Ys. (up-to F.Y. 2019-20), turnover was less than Rs. 100/ 500 Crores, so not applicable from 01/10/2020 or 01/01/2021.

Illustration-3:

Financial YearTurnover (in crores)Applicable from which year?
2017-18165No
2018-19260No
2019-20105No
2020-21126Yes [w.e.f. 01/01/2021]*
2021-2270Yes

*As in Previous F.Ys. (up-to F.Y. 2019-20), turnover was more than Rs. 100 Crores but less than Rs. 500 Crores, so applicable from 01/01/2021.

Illustration-4:

Financial YearTurnover (in crores)Applicable from which year?
2017-1885No
2018-1997No
2019-2099No
2020-21125No
2021-2268Yes [w.e.f. 01/04/2021] *

*As in Previous F.Y. 2020-21, turnover was more than Rs. 100 Crore, so applicable from 01/04/2021.

Whether e-invoicing applicable to supplies made by notified persons to Govt. Departments?

  • Where the Govt. Department is not registered under the GST Act, requirement of e-invoicing doesn’t arise.
  • Where the Govt. Department is registered under the GST Act, the same has to be mentioned as recipient GSTIN in the e-invoice.

Whether e-invoicing applicable for invoices between two GSTINs but under same PAN?

Yes. Because different GSTINs under same PAN are treated as “Distinct Persons” as per section 25(4) of the CGST/ SGST Act, 2017.

Whether e-invoicing applicable for Imports?

No. E-invoicing is not applicable for Import Bill of Entry.

Which entities/ sectors are exempted from e-invoicing?

  • Special Economic Zone (SEZ) Units,
  • Insurer or a banking company or a financial institution, including a non-banking financial company,
  • Goods transport agency 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 exhibition of cinematograph films in multiplex screens.

Whether SEZ developers need to issue e-invoice?

Yes, if they have the specified turnover and fulfilling other conditions of the notification.

In terms of Notification No. 61/2020- Central Tax Dated 30/07/2020, only SEZ Units are exempted from issuing e-invoices.

To Read my Presentation on E-Invoicing: Part-1, Please Click Here

Next part to be launched soon. For any query, please email me at dhanraj@taxconcept.net

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GST TAXPAYERS WHO ARE UNDER QRMP SCHEME? Auto-population of e-invoice details into GSTR-1 trial ITR 1 and 4 Utilities for has been available for E-filing for the Assessment year 2021-2022 Accounting Software with Audit Trail Just In:- CBDT Issue clarification Knowledge is Power! Latest Post