E INVOICE COMPLIANCE

on-generation of e-invoices will imply non-intimation of supply transactions to the government. Any invoice issued by the applicable taxpayer without the IRN is considered an invalid invoice under GST law. In other words, it is regarded as a non-issue of the invoice as per
sub-rule (5) of Rule 48 of the CGST Rules. Thus, it attracts a penalty for non generation of e Invoice.

The penalty for non generation of e invoice along with the penalty for incorrect or invalid e-invoice:

1. Penalty for non generation of e invoice – 100% of the tax due or Rs.10,000, whichever is higher, for every invoice.
2. Penalty for incorrect invoicing – Rs.25,000 per invoice.

In addition... 

The following are the consequences of non generating IRN, apart from the penalty for e invoice-

Goods in transit can be detained-

Holding up invoice payments/ITC claims may be denied to GST registered buyers- .

Affects e-way bill generation and causes delays- 

Hassles of correcting e-invoices and e-way bills-   etc.