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 Year | Turnover (in crores) | Applicable from which year? |
| 2017-18 | 700 | No |
| 2018-19 | 420 | No |
| 2019-20 | 250 | No |
| 2020-21 | 450 | Yes [w.e.f. 01/10/2020] * |
| 2021-22 | 100 | Yes |
*As in F.Y. 2017-18, turnover is more than Rs. 500 Crores, so applicable from 01/10/2020.
Illustration-2:
| Financial Year | Turnover (in crores) | Applicable from which year? |
| 2017-18 | 88 | No |
| 2018-19 | 67 | No |
| 2019-20 | 79 | No |
| 2020-21 | 580 | No* |
| 2021-22 | 50 | Yes [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 Year | Turnover (in crores) | Applicable from which year? |
| 2017-18 | 165 | No |
| 2018-19 | 260 | No |
| 2019-20 | 105 | No |
| 2020-21 | 126 | Yes [w.e.f. 01/01/2021]* |
| 2021-22 | 70 | Yes |
*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 Year | Turnover (in crores) | Applicable from which year? |
| 2017-18 | 85 | No |
| 2018-19 | 97 | No |
| 2019-20 | 99 | No |
| 2020-21 | 125 | No |
| 2021-22 | 68 | Yes [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