E-INVOICE

Electronic Invoice (e-invoice) is a digital document which is issued, transmitted, received, stored & processed digitally. Under this, all the B2B and Export invoices generated electronically by businesses, need to be registered in government system.

Some of the advantages of e-invoices are as follows:

  • No need for extra resources like printers, scanners or the postal services.
  • Easy and precise ITC claim.
  • Minimized invoice mismatches during reconciliation.
  • Invoices are uploaded on portal which will allow multipurpose. this will reduce the need for manual data entry while filing GST returns.
  • From a buyer perspective, risk of fraud billing is reduced.

Scanned papers, document in PDF, Word, Excel are not considered as e-invoice.
After GST evasion in India, E-invoicing is increasingly mandated by Govt. Tax leakages and fraud using fake invoices are issues on which Government is trying to fight before GST.

E-INVOICE IS MANDATORY FOR:

On the basis of Aggregate Annual Turnover-

  • The first it is mandatory for companies having T/O of more than 500cr on 1st oct 2020.
  • The second phase is mandatory for companies having T/O of more than 100cr on 1st Jan 2020,
  • The next phase is suppose to go from 1st April 2021 for companies having a T/O of more than 50cr.

On the basis of Financial Year- As per the Not. No. 13/2020 amended vide Not. No. 70/2020 and Not. No. 88/2020, Aggregate Annual Turnover in any preceding fy from 17-18 onwards need to be considered to check the applicability of e-invoice.

On the basis of Entity Type: only suppliers can generate e-invoice buyers and transporters cannot generate e-invoice. E-commerce operator can generate e-invoice on behalf of suppliers.

WHO DOESN’T REQUIRE TO GENERATE E-INVOICE:

E-invoice is not mandatory for following persons as per e-invoice vide GST notification No. 13/2020-Central Tax dated 21st Mar 2020:
• Supplier of passenger transportation services;
• Banking companies;
• Investment companies;
• Financial Institution;
• NBFCs;
• Goods Transportation Agency;
• Special Economic Zones (SEZs) units (Notified vide Notification No. 13/2020 and 61/2020- Central Tax)

GENERATION OF E-INVOICE

Once an invoice is created by a taxpayer system itself sent invoice to Invoice Registration Portal (IRP) for authorization. After authorization, data is updated with IRPs digital signature and a QR code along with Invoice Registration Number (IRN).

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