GST e-invoice System – FAQs
1. What is ‘e-invoicing’?
2.How is ‘e-invoicing’ different from present system?
3.For which bus ine s ses,e-invoicing is mandatory?
4. From which date, e-invoicing is mandatory for the notified classes of taxpayers?
5.What are the legal provisions governing e-invoice?
|Notification No. (Central Tax)||Key Contents|
|68/2019 Dt. 13-12-2019||
(4) The invoice shall be prepared by such class of registered persons as may be notified by the Government, on the recommendations of the Council, by including such particulars contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common Goods and Services Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.
(5) Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the manner specified in the said sub-rule shall not be treated as an invoice.
(6) The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the manner specified in sub-rule (4)
|69/2019 Dt. 13.12.2019||Notified 10 Common Goods and Services Tax Electronic Portals for the purpose of preparation of invoice in terms of rule 48 (4)|
|70/2019 Dt 13.12.2019||
Notified registered person, whose aggregate turnover in a financial year exceeds one hundred crore rupees, as a class of registered person who shall prepare invoice in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person; notification to come into force from the 1st day of April, 2020
(This notification superseded by 13 of 2020 Dt. 21-3-2020)
|2 of 2020 Dt. 1-1-2020||
Substituted Form GST INV-1 as e-invoice schema(Schema further amended vide Notification 60/2020 Dt. 30-7-2020)
|13 of 2020 Dt 21.03.2020 (in supersession of 70/2019 Dt. 13.12.2019||
(Further amended by 61/2020 Dt. 30-7-2020)
|60/2020 Dt 30.07.2020||
|61/2020 Dt. 30.07.2020||
6. What are the advantage s of e-invoice for bus ine s ses?
7.What businesses need to do, to be e-invoice ready?
8. Is an invoice /CDN/DBN (re quire d to be re ported to IRP by notified person), valid without IRN?
9.What documents are presently covered under e-invoicing?
iii. Debit Notes,
when issued by notified class of taxpayers (to registered persons (B2B) or for the purpose of Exports)are currently covered under e-invoice.
Though different documents are covered, for ease of reference and understanding, the system is referred as ‘e-invoicing’.
10.What supplies are presently covered under e-invoice?
Supplies to registered persons (B2B),Supplies to SEZs (with/without payment), Exports (with/without payment), Deemed Exports, by notified class of taxpayers are currently covered under e-invoice.
11. B2C (Business to Consumer) supplies can also be reported by notified persons?
No. Reporting B2C invoices by notified persons is not applicable/allowed currently. However, they will be brought under e-invoice in the next phase.
12.What is the applicability of e-invoice for import trans actions?
13.Which entities /sectors are exempt from the e-invoicing mandate ?
b. insurer or a banking company or a financial institution, including anon-banking financial company
c. goods transport agency supplying services in relation to transportation of goods by road in a goods carriage
d.Suppliers of passenger transportation service
e. Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens
14.The exemption from e-invoicing is w.r.t the nature of supply/transaction or w.r.t the entity?
It is for the entity.
15. Do SEZ Developers need to issue e-invoices?
16.Are Free Trade & Ware housing Zones (FTWZ) exempt from e-invoicing?
17.Is e-invoicing applicable for supplies by notified persons to SEZs?
18.The re is an SEZ unit and a regular DTA unit under same legal entity (i.e . having same PAN). The aggregate total turnover of the legal entity is more than Rs . 500 Crore s (cons idering both the GSTINs ). However, the turnover of DTA unit is be low Rs. 100 crore s for FY 19-20.
In this scenario, as SEZ unit is exempt from e-invoicing, whether e-invoicing will be applicable to DTA Unit?
Yes, because the aggregate turnover of the legal entity in this case is > Rs. 500 Crores. The eligibility is based on aggregate annual turnover on the common PAN.
19. Is e-invoicing applicable to invoice s issued by Input Se rvice Distributor (ISD)?
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