E-INVOICING – APPLICABILITY & REGISTRATION

E-INVOICING – APPLICABILITY & REGISTRATION

E-Invoicing is a system for authentication of B2B invoices electronically by the GSTN. Under the electronic invoicing framework, a unique Invoice Reference Number (IRN) is issued against each invoice digitally using Invoice Registration Portal (IRP) managed the GSTN. Maximum 100 items can be incorporated in a single invoice.

E-Invoicing eliminates the need to enter data manually in different portals, i.e., we are not required to enter the same data again and again into GST Portal, E-Way Bill Portal and in the E-Invoice Portal.

E-Invoicing also helps to track the invoices in real-time. It helps in resolving a large gap in data reconciliation under GST to reduce the mismatch of errors. It provides a framework to quickly access the complete invoice related details.

APPLICABILITY

An assessee shall comply with the provisions of e-invoicing if their aggregate turnover exceeds the specified limit in any financial year after the implementation of GST, i.e., 2017-18 onwards. The calculation of aggregate turnover shall include the turnover of all the GSTINs issued under a single PAN across India.

PHASEAPPLICABLE IFAPPLICABILITY DATE
ITURNOVER > 500 CRORES01.10.2020
IITURNOVER > 100 CRORES01.01.2021
IIITURNOVER > 50 CRORES01.04.2021
IVTURNOVER > 20 CRORES01.04.2022

Example: Suppose PQR Ltd had aggregate turnover as follows:

YEARTURNOVER
FY 2017-18Rs.12 crore
FY 2018-19Rs.16 crore
FY 2019-20Rs.23 crore
FY 2020-21Rs.18 crore
FY 2021-22Rs.14 crore

PQR Ltd shall mandatorily generate e-invoices from 01.04.2022 irrespective of the current year’s aggregate turnover as it has crossed the threshold limit of Rs.20 crore turnover limit in FY 2019-20.

Following class of taxpayers are currently covered under e-invoicing:
  • Supplies to the registered persons (B2B)
  • Supplies to SEZs
  • Exports
  • Deemed exports

WHO DOESN’T REQUIRE E-INVOICING?

Following category of a person exempted under e-invoice

  • A banking company
  • A non-banking financial company
  • A financial institution
  • An insurer
  • A person engaged in supplying passenger transportation service
  • A goods transport agency (GTA) supplying services
  • A person engaged in supplying services in terms of admission of the exhibition of cinematograph films in the multiplex screen
  • Persons registered in terms of Rule 14 of CGST Rules (OIDAR)
  • Special Economic Zone units (although e-invoicing is required for SEZ Developers)

HOW TO REGISTER FOR E-INVOICING

  • Click on Registration < e-Invoice Establishment.
  • Fill your GSTIN, enter the captcha and click on GO.
  •  After clicking on GO, the details would be shown as below:
  • Then, click on SEND OTP. OTP will be sent on your registered mobile number. Verify the OTP.
  • Now, select the respective financial year and specify the turnover of that period.
  • Click on SUBMIT.
  • After submitting the required details, login credentials would be generated. He/she would be registered for preparing e-invoices.

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