GST E-INVOCING

 

GST E-INVOICING IS MANDATORY  FOR THE TAXPAYERS WHO'S ANNUAL TURNOVER IS ABOVE  FIFTY CRORES W.E.F 1ST APRIL 2021

Sub-rule (4), (5), and (6) was inserted in Rule 48 (Manner of issuing Invoice) of the Central Goods and Services Tax Rules, 2017 (“CGST Rules”) vide Notification No. 68/2019 -Central Tax dated 13th December 2019 in respect to generating e-invoice as under-

“Rule (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 Service Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.

Rule (5) Every invoice issued by a person to whom sub-rule (4) applies in any manner other than manner specified in the said sub-rule shall not be treated as an invoice.

Rule (6) The provisions of sub-rules (1) and (2) shall not apply to an invoice prepared in the manner specified in sub-rule (4).”

Accordingly, in exercise of the powers conferred by sub-rule (4) to Rule 48 of CGST Rules, the Government, on the recommendations of the Council, vide Notification No. 70/2019- Central Tax, dated 13th December 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. This notification came into force from the 1st day of April 2020. 

However, before coming to the aforesaid Notification into force (i.e. Notification No. 70/2019- Central Tax, dated 13th December 2019), the Government, in supersession of this notification, vide Notification No. 13/2020- Central Tax, dated 21st March 2020 notified registered person, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in a financial year exceeds one hundred crore rupees, as a class of registered person who shall prepare invoice and other prescribed documents, 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. This notification came into force from the 1st day of October, 2020. 

However, before coming to the aforesaid Notification into force (i.e. Notification No. 13/2020- Central Tax, dated 21st March 2020), the Government made further amendments in the Notification No. 13/2020 – Central Tax, dated the 21st March 2020, vide Notification No. 61/2020-Central Tax, dated 30th July 2020 by which the limit of turnover was increased from “one hundred crore rupees” to “five hundred crore rupees”.

Again, the Government made further amendments in the Notification No. 13/2020 – Central Tax, dated the 21st March 2020, vide Notification No. 70/2020-Central Tax, dated 30th September 2020 by which it was notified that registered person, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds five hundred crore rupees, as a class of registered person who shall prepare invoice and other prescribed documents, 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 or for exports.

Once again, the Government made further amendments in the Notification No. 13/2020 – Central Tax, dated the 21st March 2020, vide Notification No. 88/2020-Central Tax, dated 10th November 2020 by which for the words “five hundred crore rupees”, the words “one hundred crore rupees” shall be substituted with effect from the 1st day of January 2021.

Now, the Government made further amendments in the Notification No. 13/2020 – Central Tax, dated the 21st March 2020, vide Notification No. 05/2021-Central Tax, dated 8th March 2021 by which for the words “one hundred crore rupees”, the words “fifty crore rupees” shall be substituted with effect from the 1st day of April 2021.

Therefore w.e.f. 1st day of April 2021, the Principal Notification No. 13/2020 – Central Tax, dated the 21st March 2020 shall be read as under-

“registered person, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds fifty crore rupees, as a class of registered person who shall prepare invoice and other prescribed documents, 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 or for exports.”

CA NAVEEN KUMAR DIGUVA SADUM
NAVEEN KUMAR D S & CO 

Chartered Accountants
email: ca.naveenkumards@gmail.com
Phone: 90590 95083

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