As you are kindly aware that E-Invoicing has been implemented in India in a phase manner applicable to all taxpayers (except certain persons exempted) having aggregative turnover exceeding specified limit in any of the preceding F.Y. from F.Y. 2017-18 onwards:
* Exceeding INR 500 Crores. – W.e.f. 1st October 2020
* Exceeding INR 100 Crores. – W.e.f. 1st January 2021
* Exceeding INR 50 Crores. – W.e.f. 1st April 2021
In case where E-Invoicing is applicable to Suppliers, it is required that Tax Invoice/Debit Note/Credit Note should mandatorily mention QR Code embedded with IRN generated at E-Invoice Portal to consider it a valid tax document. Non-reporting of Invoice at E-Invoice Portal even though required will question the availability of ITC to recipients.
Hence, it is imperative for recipients to identify all those vendors who are not following E-Invoicing norms and seek a suitable declaration that provisions of E-Invoice do not apply to them. Such declaration may be obtained from all vendors who supply goods or services to you on or after 1st October 2020. The suggested draft of the Declaration is attached herewith.
Specimen for declarations for non-applicability of e-invoicing
TO BE PRINTED ON THE LETTERHEAD
To whomsoever, it may concern
We M/s. ………………………………………………… having PAN ……………………… and GSTIN Registration Number …………………………. hereby undertake that provisions of E-Invoicing (B2B supplies and Exports) as contained in GST law wherein Tax Invoices/Credit Notes/Debit Notes (‘Documents’) are required to be reported to E-Invoice portal by generating IRN and QR code embedded with IRN is required to be mentioned on aforesaid documents are not applicable to our GSTIN on account of following reasons:
(1.) Our Aggregate Turnover (as per Section 2(6) of Central Goods and Services Tax Act, 2017 which includes zero-rated, non-taxable, exempted, deemed supplies) in any of the Financial Year for 2017-18, 2018-19, 2019-20 & 2020-21 does not exceed INR 50 Crores or
(2.) We are a category of taxpayers (To be specified) which have been made exempted from requirements of E-Invoicing.
Further, we also undertake that if in future e-invoicing is applicable to us, then we shall notify you by email and issue Documents in compliance with the required provisions of GST Law.
Further, we undertake to indemnify (name of client) for any liability on account of non-compliance of e-invoicing requirements although applicable to us.
Yours Truly,
For M/s…………………………………..
Authorized Signatory
Name:……………….
Designation:……………….
The Author’s Name is CA Nikhil Jhanwar and he can be reached at nmjhanwar@gmail.com
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Good information.