{"id":1724,"date":"2023-01-13T15:53:40","date_gmt":"2023-01-13T10:23:40","guid":{"rendered":"https:\/\/filingpoint.com\/consultants\/?p=1724"},"modified":"2024-01-03T06:49:11","modified_gmt":"2024-01-03T01:19:11","slug":"who-is-eligible-for-e-invoice-in-gst","status":"publish","type":"post","link":"https:\/\/filingpoint.com\/consultants\/who-is-eligible-for-e-invoice-in-gst\/","title":{"rendered":"Applicability of E-invoicing for Businesses with > 5 Cr Turnover | 1 Aug 2023"},"content":{"rendered":"\n

Our GST Registration<\/a> Experts are available to help you at +91-72999-72500<\/strong><\/p>\n\n\n\n

To Whom is E-invoicing applicable? This is the first question that pops in the mind of every GST registered tax payers.<\/p>\n\n\n\n

GST department is planning to implement e-invoicing for all taxpayers irrespective of turnover limit. But it is yet to be finalized by the department. Hence many taxpayers are getting confused with e-invoicing system, .It is important for businesses to know about this e-invoicing system. Today we are going to see what e-invoicing system is all about. E-invoice is a billing system introduced by GST to simplify billing and compliance norms for all related invoice stakeholders.<\/p>\n\n\n\n

Under e-invoicing system, the seller as usual raises sale bill using his billing software. Then you need to generate an IRN number (Invoice Reference number) for the said invoice at IRP (Invoice Registration Portal). This IRN number is important for all the respective stake holders like sellers, buyers, supply chain professionals and govt.<\/p>\n\n\n\n

What is GST E-Invoice ?<\/p>\n\n\n\n

GST council has implemented e-invoicing system to reduce GST tax evasion from taxpayers. GST officers conclude that with mandatory e-invoicing for all sale of goods and services to businesses, tax evasion can be reduced and reporting gets easier for taxpayer and  assessments becomes easy for GST department.<\/p>\n\n\n\n

GST e-invoice is not the soft copy of GST bill like PDFs, prepared by business. GST    e-invoice is a digital invoice for goods and services provided by businesses. You can generate the same at GST e-invoice generation portal. Raising GST e-invoice at GST portal is compulsory for certain taxpayers whose turnover exceeds the prescribed govt. limits. It is applicable to only certain taxpayers only at present.<\/p>\n\n\n\n

When a taxpayer generates bill on GST e-invoicing portal, an unique number(IRN) is allocated to the e-invoice generated by them. This unique number can be used by all related parties for correlating those respective invoices, sales returns, reconciliations and tax paid verification and so on.<\/p>\n\n\n\n

E-invoice can be generated with your billing software and be updated at GST portal with API integration and excel modes. For more details please consult your tax and software professionals.<\/p>\n\n\n\n

Applicability of E-Invoicing<\/strong><\/p>\n\n\n\n

To Whom is E-invoicing applicable? This is the first question that pops into the mind of every GST registered tax payers.<\/p>\n\n\n\n

E-invoice is being implemented on a phased manner by the GST council. E-Invoicing system is applicable to only for B2B billing only. It is applicable to PanIndia businesses with an aggregate annual turnover above prescribed limit .<\/p>\n\n\n\n

Turnover Criteria for E-Invoicing<\/strong><\/p>\n\n\n\n

Tax payers must mandatorily shift to e-invoicing in FY 2023-24 and onwards if their turnover exceeds specific limit from FY 2017-18 TO FY 2021-22 as per government notifications. Moreover, aggregate turnover means it covers all GSTINs under a single PAN across India.<\/p>\n\n\n\n

Now, the government declares E-Invoice is mandatory if the turnover crosses Rs.5 Crores.<\/p>\n\n\n\n

To Whom E-Invoicing is not applicable<\/p>\n\n\n\n

Irrespective of turnover limit, e-invoicing is not applicable to the following registered tax persons.GST e-invoicing is not applicable to sectors like<\/p>\n\n\n\n

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  1. Passenger transport services,<\/li>\n\n\n\n
  2. Insurance or banking company nbfc or financial institution,<\/li>\n\n\n\n
  3. SEZ units,<\/li>\n\n\n\n
  4. A registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex services<\/li>\n\n\n\n
  5. Goods transport dealer by road gta<\/li>\n\n\n\n
  6. Govt. Department or local authority as per cbic notification<\/li>\n\n\n\n
  7. Persons registered in terms of rule 14 of cgst rules (oidar)<\/li>\n<\/ol>\n\n\n\n

    CBIC has clarified that e-invoicing exemptions applies to the entity as whole. It is not restricted by nature of supply of the entity.<\/p>\n\n\n\n

    What are the Mandatory details required for e-invoicing?<\/p>\n\n\n\n

    E-invoices need to adhere to GST billing rules. Moreover they need to also comply with billing rules and policies of respective business sectors too. Some details are mandatory while few are optional.<\/p>\n\n\n\n

    The following is the list of mandatory fields in GST e-invoice:<\/p>\n\n\n\n