E-Invoice in case of OIDAR Services &Nil Supply

Based on current GST regulations in India, here is the resolution to your query regarding e-invoicing for OIDAR and nil-rated supplies:

1. E-Invoicing for Nil-Rated/Exempt Supplies

E-invoicing is not applicable to nil-rated or wholly exempt supplies.

• Reason: The e-invoicing mandate applies specifically to "tax invoices." For nil-rated or exempt supplies, businesses are required to issue a "Bill of Supply" rather than a tax invoice. Since the e-invoice system is designed to authenticate and register tax invoices, it does not apply to transactions where no tax is charged.

2. E-Invoicing for OIDAR Services

The applicability of e-invoicing for OIDAR (Online Information and Database Access or Retrieval) services depends on the nature of the transaction:

• Taxable Supplies: If you are providing OIDAR services that are taxable under GST, and your entity's aggregate annual turnover exceeds the prescribed threshold (currently ₹5 crore), you are required to generate e-invoices for your B2B supplies.

• Non-Taxable/Exempt OIDAR: If the specific OIDAR service being provided is exempt or nil-rated, the general rule for exempt supplies applies, and no e-invoice is required.

• Important Exclusion: It is important to note that certain entities, such as government departments and local authorities, are excluded from the e-invoicing mandate by notification.

Summary Table

Recommendation: Always verify your specific aggregate annual turnover (AATO) across all preceding financial years since 2017–18. If your AATO exceeds the threshold, you must ensure that all taxable B2B invoices are e-invoiced, while continuing to issue Bills of Supply for your exempt or nil-rated transactions.

Summary: E-invoicing is mandatory for taxable B2B supplies if your aggregate turnover exceeds the threshold (₹5 crore), but it is not applicable to nil-rated or wholly exempt supplies, regardless of your turnover, as these transactions require a Bill of Supply instead of a tax invoice.