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E-INVOICE IS MANDOTARY OR NOT FOR SELLING EXEMPTED GOODS.

Others 2609 views 1 replies

karthi keyan

23 Points Posted on 17 December 2024

Taxpayer Turnover across 40 Crs and they are selling 99% Exempted item and 1% Taxable item. Is it necessary to genarate E invoice for all Exempted goods. Kindly suggest

Replies (1)

Quick Summary

E-invoicing is mandatory only for taxable supplies if turnover exceeds Rs. 10 crore. Exempted or nil-rated goods are not required to be reported under e-invoicing. In this case, only 1% taxable sales require e-invoice generation, while 99% exempted supplies are outside its scope.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9615 Points Posted on 17 December 2024

As per the Central Board of Indirect Taxes and Customs (CBIC) notification, e-invoicing is mandatory for businesses with an aggregate turnover exceeding ₹10 crores in a financial year, starting from 1st October 2022.

However, there's an exemption for certain categories of suppliers, including those who: - Supply exempted goods or services - Supply goods or services attracting nil rate of tax In your case: - The taxpayer has a turnover exceeding ₹40 crores. -

They sell 99% exempted items and 1% taxable items. For the exempted goods (99% of total sales), e-invoicing is not mandatory.

However, for the taxable goods (1% of total sales), e-invoicing is mandatory since the aggregate turnover exceeds ₹10 crores. To summarize: -

E-invoicing is not mandatory for exempted goods (99% of total sales). -

E-invoicing is mandatory for taxable goods (1% of total sales).