Brief about E-invoicing under GST

As per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified details of invoice (in FORM GST INV-01) on IRP and obtain an IRN. The Invoice containing IRN (with QR Code) is commonly referred to as ‘e-invoice’ in GST

Note: A GST invoice will be valid only with a valid IRN.

1. Applicability: E-invoicing is applicable to the assessee having an aggregate Annual turnover above the limits mentioned below in any year since 2017-18.

Note: SEZ units/Insurer/Banking Company /financial institution, including a NBFC/ GTA/ passenger transport service/services by way of admission to exhibition of cinematograph films in multiplex screens is exempted from GST e-invoicing mandate.

E-Invoice is not applicable for ISD invoices issued.

2, Who can issue GST Invoice – Supplier / E-commerce

3. Documents are covered under e-invoicing -Invoices/Debit Note /Credit Note

Note: Financial Debit Note / Credit Note / having no GST impact shall not be reported on IRP.

4. Supplies Presently covered under E-invoice-B2B/Supplies to SEZ/Exports/Deemed Exports.

Note: B2C/Nil rate/Exempt Supply is not covered under e-invoicing.

5. The column of other charges is not considered for Taxable turnover Therefore same can be used to show TCS/TDS. However other charges like Freight/Insurance/Packing & forwarding charges on which GST is applicable.

6. Minimum Penallty of Rs.10,000 for not issuing invoice in accordance with GST Law/rules (Sec.122 of CGST Act, 2017)

7. Amendments in E-invoice is not possible any changes if any can be carried out only in GSTR-1.

8. E-invoice can be cancelled within 24 hours from the time of reporting e-invoice. However if connected e-way bill is active or verified by officer during transit, cancellation of IRN will not be permitted. Further invoice needs cancelled toto partial cancellation is not possible in E-invoicing.