E-Invoice under GST is mandatory for businesses with a turnover of more than Rs. 500 crore.Under the e-invoicing system, businesses are required to generate invoices in a specific format and then submit them to the GST Network (GSTN) for validation. Once the invoice is validated, a unique invoice reference number (IRN) is generated and sent back to the business. This IRN must be included on the invoice when it is sent to the customer.
A BRIEF SUMMARY ON E-INVOICE UNDER GST
What is e-Invoice?
E-invoice full form is electronic invoice. E-invoice is a digital document, endless trail of paperwork, exchanged between a buyer and suppliers. It’s validated by the Government tax portal. E-invoice related to only registered parties’ business to business (B2B), not (Business to Consumers Small) B2CS.
Analysis Of E-Invoice
1. E-invoice generated by registered tax payer in Goods and Service Tax (GST).
2. E-invoice generated by the suppliers needs to be prepared and reported two different systems first is GST portal and second is E-Way bill.
Amounts limit changes steps in E-invoice
- Business turnover higher than Rs.100 crore in a year.(Notification 13/2020 on 1s March 2020)
- The turnover limit was raised from Rs.100 crore to Rs.500 crore to limit its applicability.(Notification 61/2020 on 30th Jul 2020)
- The turnover limit was raised from Rs.100 crore to Rs.500 crore to limit its applicability.(Notification 05/2021 on 8th March 2021)
- Change in original notification 13/2020 to further reduce the turnover limit to Rs.20 crore from Rs.50 crore to extend the applicability to more taxpayers.(Notification 01/2022 on 24th Feb 2022)
- Rs.5 crore in process but not final.
Cases where E-Invoicing not be applicable:
The following categories of registered persons for now (CBIC Notification No.13/2020 – Central Tax
- Goods Transport Agency (GTA)
- Banking company or a financial institution, including an NBFC
- Government department and Local authority
- Registered person supplying passenger transportation services
- An SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax)
E-Invoice currently covered
- Exports (With payment of tax/Without payment of tax)/ Deemed exports
- Business to business Supplies (B2B) SEZs
- Supplies (With payment of tax/Without payment of tax)
E-Invoice to be Cancelled /Amended
A. Cancelled E-invoice only cancelled to be fully not partially. Cancellation done after 24 hours.
B. Amended All amendments to an e-invoice can be made only on the GST portal in the GSTR-1 return.