CBIC Reduces Limit for E-invoice from Rs. 20 Crore to Rs. 10 Crore w.e.f 1ST OCT 2022
What is E-invoice?
E-Invoicing/E-Invoice is a form of electronic billing which is increasingly mandated by Governments across the World due to tax evasion.
A. E-invoicing shall not be applicable to the following categories of registered persons irrespective of the turnover:
An insurance or a banking company or a financial institution, including an NBFC
- A SEZ unit
- A Goods Transport Agency (GTA)
- A registered person supplying passenger transportation services
- A registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex cinema
- Government department and local authority
In India, the Government introduced e-invoicing in mid of the financial year 2020 with businesses having aggregate turnover above Rs. 500 Crore. The limit of Rs. 500 Crore turned to Rs. 100 Crore from 1st January 2021 then to Rs. 50 Crore from 1st April 2021 and now it is Rs. 20 Crore from 1st April 2022.
Interestingly, if the turnover in any of the financial years from 2017-18 till now crosses the aggregate turnover limit then e-invoicing is applicable.
As per Rule 48(4) of the CGST Rules, 2017, an e-invoice is required to be prepared by the taxpayer by uploading the specified particulars in FORM GST INV-01 on the Invoice Registration Portal (IRP) and obtain the Invoice Reference Number (IRN).
What is the process for generating E-Invoices?
E-invoices are to register under the E-invoice portal. One has to separately register themselves on the e-invoice portal. Gladly, if the taxpayer register itself on the e-invoice portal then there is no need to special register themselves on the e-way bill portal.
1. Login to website – einvoice1.gst.gov.in
2. Select “Registration”, subsequent to which select, “Portal Login”
3. After selection of “Portal Login” we have to enter our “GSTIN” and select “Go”
Details as per GST portal like, Name, Mobile No, and Email-Id will be displayed automatically and after verifying the same, we have to press “Click on OTP” button. After verification of OTP through registered mobile number, one can set. Username and Password for E-Invoice GS portal. Subsequent to the registration, we will generate E-Invoice
To generate e-invoice we have to download E-invoice utility from Portal. To download that one can click on “Help” >> “Tools” >> “Bulk Generation Tools”. Basically, there are two tools one is, “Excel Utility (Bulk Generation Tools)” or the other is “GePP tool”. GePP tool is for small taxpayers and excel utility for others.
Cancellation of E-Invoice
- To cancel, “E-Invoice”, on right side corner, we have to select, “cancel e-invoice”. Accordingly we have to mention, “Acknowledgement number” or “IRN” and cancel the same. We have to cancel each invoice, “One by One”.
- There is no option to modify the e-invoice once generated.
- Once an IRN is cancelled, the same invoice number cannot be used again to generate another invoice.
- Cancel can be done within 24 hours.
- Amendment and cancellation of e-invoices are allowed on the GST portal but as per the provisions of GST law, any changes made will be flagged to proper officer for information.
G.S.R. 612(E).—In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely:-
In the said notification, in the first paragraph, with effect from the 1st day of October, 2022, for the words “20 CRORES rupees “, the words “10 CRORES rupees” shall be substituted.