E-Invoicing at a Glance

 E-Invoicing at a Glance

1) To Whom It Is Applicable: E-invoicing is applicable to registered persons whose aggregate turnover exceeds a specified threshold in any financial year from FY 2017–18 onwards. Thresholds for Applicability: Turnover Limit Effective Date ₹500 Cr 1st Oct 2020 ₹100 Cr 1st Jan 2021 ₹50 Cr 1st April 2021 ₹20 Cr 1st April 2022 ₹10 Cr 1st Oct 2022 ₹5 Cr 1st Aug 2023 2) Entities/Persons Exempted from E-Invoicing: Regardless of turnover, the following entities are exempt from e-invoicing: SEZ units (not developers) Insurer, Banks, financial institutions, and NBFCs Goods Transport Agencies (GTAs) Passenger transportation services Cinematograph film exhibition in multiplexes Government departments and local authorities 3) Documents Covered Under E-Invoicing: The following documents require e-invoicing: Tax Invoices Debit Notes Credit Notes Related to B2B supplies and exports under GST. 4) Supplies Covered Under E-Invoicing: E-invoicing is mandatory for: B2B (Business-to-Business) supplies B2G (Business-to-Government(CG/SG) supplies Exports (with or without payment of tax) Supplies to SEZs (with or without payment of tax) Deemed exports B2C invoices are NOT covered, but QR code generation is required for B2C by certain large taxpayers (over ₹500 Cr turnover). 5) When Made Applicable: 01.10.2020 with relaxation of one month for non-compliance of rule 48(4) of the CGST rules provided IRN obtained from IRP within 30 days of invoice and penalty as leviable u/s 122 of the CGST Act would be waived accordingly – Press release dated 30.09.2020 followed by Notification no-73/2020-central tax dated-01.10.2020. 6) Amendment / Cancellation of reported invoice · Any changes in the invoice details reported to IRP can be carried out on GST portal. In case GSTR-1 has already filed, then using the mechanism of amendment as provided under GST. · Cancellation request can be triggered through “Cancel API “ within 24 hours from the time of reporting invoice to IRP. · Once an IRN is cancelled, the concerned invoice number cannot be used to generate another e-invoice/IRN. · IRN is unique 64-character hash. · No partial cancellation of reported e-invoice allowed. 7) Time limit for generating IRN: As per advisory 05.11.24, the threshold for reporting e-invoice was lowered from an AATO of 100 crores to 10 crores, effective from 01.04.2025. As a result, taxpayers with an AATO of 10 crores or above will be required to report e-invoice within 30 days from the invoice date, aligning with the revised compliance requirements for all documents types.

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