E-invoicing - 50 FAQS and solutions

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FAQs

Solutions

Applicability

1

Whether generation of E invoice is exempted for GTA business as whole or type of service?

The GTA as whole would be exempted from e-invoicing
Analysis:
NN 13/2020 CT provides that …... notifies registered person, other than those referred in to in sub-rules (2),
(3), (4) and (4A) of rule 54
The word "referred" to be emphasized more, here only reference of registered person in the rule 54 is given and not the entire rule
Rule 54(3) covers the GTA agency for tax invoice is special cases
The cue could be taken that 13/2020 exempts GTA as whole and not GTA agency services wise

Further the said view is supported by FAQ 18 released by GSTN that the exemption from e-invoicing is entity wise and not supply/transaction wise

2

Whether e-invoicing is applicable for invoices between two different GSTINs under same PAN [such as branches of co located in different States]?

e-invoicing is applicable to such distinct person having different GSTINs but same PAN and there is no exception given to them.

3

Whether Free Trade & Warehousing Zones (FTWZ) are exempted from e-invoicing?

A registered person, other than an SEZ unit…........... is required to generate e-invoice where turnover is more than 100 crs [500crs 01.10.2020 - 31.12.2020]
SEZ unit includes Free Trade & Warehousing Zones (FTWZ) consequently exempt from E-invoicing

4

Whether SEZ developers are exempted from e-invoicing?

SEZ Developers are not exempted from E-invoicing as the exclusion mentions only SEZ unit, therefore SEZ developer need to follow e-invoicing procedure. Whether this was prima facie mistake in law or not that could be a question to Govt that intention was only to SEZ units or SEZ as whole

5

How to calculate aggregate turnover?

Inclusions:
Taxable supplies, Exempt supplies, Non-taxable supply, Export of goods, Export of services, Inter-State supplies of persons having same PAN, supplies without consideration [Schedule I]
Exclusion:
Inward supplies on which tax is payable under RCM, CGST, SGST, IGST and cess
To be computed on PAN India basis.

6

Which year aggregate turnover to be compared with 500crs [01.10.2020] and 100 crs [Post 31.12.2020]?

The aggregate turnover to be compared in any preceding financial year from 2017-18 onwards

Where turnover was exceeded 500 crs in previous FY from 17-18 then e-invoicing would be applicable from 01.10.2020

In case of 100 crs was exceeding in any previous FY from 17-18 then e-invoicing from 01.01.2021

Where turnover of 100crs was not exceeded in any previous FY and exceeding in current year then e-invoicing from 01.04.2021

7

In case in any previous FY from 17-18 turnover was within 100crs however in current FY turnover exceeded 100 crs whether e-invoicing is applicable for current year?

No e-invoicing is not applicable in current FY as turnover in any preceding year was less than 100 crs
e-invoice would be applicable in succeeding FY April onwards

8

Whether e-invoice is applicable in case of exports?

Yes e-invoicing is applicable when invoice issued to recipient

9

Whether exempt supply exported are also covered for e-invoicing?

Yes e-invoicing is applicable for all supplies including exempts when invoice issued to recipient

10

When taxable supplies made to B2B SEZ e-invoicing is applicable?

Yes e-invoicing is applicable

11

When exempt supplies made to B2B SEZ e-invoicing is applicable?

No e-invoicing is not applicable as it is exempt supply unlike for export exempt and taxable supplies are covered under e-invoicing

12

Whether e-invoicing applicable for NIL-rated or wholly-exempt supplies?

No. In those cases, a bill of supply is issued and not a tax invoice consequently no e-invoice required

13

Whether for high sea sales and bonded warehouse sales e -invoicing is applicable?

No. These activities/transactions are neither supply of goods nor a supply of services, as per Schedule III of CGST/SGST Act.

14

What is the applicability of e-invoice for import transactions?

e-invoicing is not applicable for import Bills of Entry.

15

Whether e-invoicing is applicable for Bill of supply, DC etc?

No e-invoicing is applicable only to Tax invoices, debit note and credit notes

16

Whether e-invoice have replaced EWB and no requirement to generate EWB?

No such proposition as on date, one needs to raise e-invoice and EWB as applicable

17

When to compare the aggregate turnover with 500/100 crs?

This condition has to be seen every year i.e., Ideally at the start of every April of FY for applicability

18

Do one need to check turnover every year when once e-invoicing is applicable?

Once E-invoicing is applicable then it would be applicable for all FYs thereafter and there is no escape from this, therefore once e-invoicing is applicable there is no need to check turnover for all succession years

Manner of e-invoicing

19

Whether e-invoice to be issued to foreign unregistered?

Yes, when it is export of goods or services then e-invoice to be raised.
In some cases it may so happen that invoice is raised to foreign URD recipient which may not be exports then in such case e-invoice is not required [ex: when services are rendered on building in India to recipient outside India in such a case it is not export of services as place of supply is in India - e-invoice is not required]

20

Whether invoice issued by ISD is covered under e-invoicing applicability?

e-invoicing is not applicable to invoices issued by Input Service Distributor (ISD)

21

What all documents are covered under e-invoicing?

Tax invoices, Credit Notes, Debit notes and Export invoice

22

Whether e-invoicing is applicable for financial debit and credit note?

Financial/commercial credit notes i.e., without GST is not required to reported in e-invoicing, only the credit and debit notes issued under Section 34 of CGST/SGST Act needs to be reported.

23

Whether e-invoice is applicable on self-invoice raised for RCM ITC availment when vendor is unregistered?

E-invoicing is not applicable in case of self-invoice u/s 31(3)(f) i.e., invoice issued by recipient on behalf of unregistered vendor for enabling ITC to him when recipient is paying tax under RCM

24

Whether need to issue e-invoice in duplicate for services /triplicate for goods?

No there is no requirement to issue duplicate/triplicate copies of invoices when e-invoice is generated [Rule 48(6) eliminates such requirement when e-invoice is issued]

25

Whether e-invoicing is applicable to Insurer or a banking company or a financial institution, including NBFC

No, e-invoicing is not applicable as they are exempted as an entity as whole

26

Whether Invoice Reference Number i.e., IRN [64 characters] is mandatory when issuing e-invoice to customers?

IRN number is not mandatory in invoice when issuing Provided Quick Response (QR) code having embedded IRN in it
suggested to store IRN in one’s ERP

27

Whether IRN is a replacement for invoice number in invoice issued?

No IRN is not a replacement to invoice number of ERP
one needs to follows its own invoice number normally, IRN would be generated by IRP and would be unique with 64 characters

28

Whether QR code is mandatory when IRN is already in invoice?

Yes, QR code is mandatory and it would be embedded with IRN in it
Further such QR code is different from B2C QR code raised - as B2C QR code provides customer to pay directly to suppliers account electronically [such UPI QR code etc]

29

RCM registered supplier providing taxable supplies - Invoice issued by a supplier on taxable supplies which recipient is paying GST under RCM, whether he would be required to issue e-invoice?

In even such cases the registered supplier would issue normal tax invoice providing that GST to be paid by recipient under RCM, such supplier would be required to issue e-invoice

30

RCM registered supplier providing exempt supplies, whether he would be required to issue e-invoice?

There is no requirement to issue e-invoice in case of exempt supplies

31

Export invoices in INR and CFE
usually Industry follows the practice that consideration would be decided in CFE and invoice would be issued to them for GST purpose the CFE would be converted into INR and reported to GST
Whether e-invoice to be raised for CFE or INR invoice?

e-invoice to be generated for invoice raised as per GST law i.e., invoice with INR

Invoice with CFE may not be treated as tax invoice when INR invoice raised – CFE invoice is only for customer reference

Issues & concerns

32

Whether amendments could be made in e-invoices once raised for which IRN has already been generated?

Amendments are not allowed on IRP once raised it cannot be changed/amended
However one could cancel the same within 24 hours Where 24 hours are lapsed then the taxpayer do not have any other option and need to proceed with the same

Further when filing GSTR-1 taxpayer could amend the same in GST portal

Such above situation would result into differences between GST portal and IRP and same would be flagged and reported to concerned jurisdictional officer thereafter justification on reasonable basis to be provided to department

33

Can one partially cancel a reported e-invoice?

No. It has to be cancelled in total. No partial cancellation of reported e-invoice allowed.
Cancellation of invoices is governed by Accounting Standards and any other applicable
rules/regulations.

34

Can an IRN/invoice reported to IRP be cancelled?

Yes. The cancellation request can be triggered through ‘Cancel API’ within 24 hours from the time of reporting invoice to IRP.
However, if the connected e-way bill is active or verified by officer during transit, cancellation of IRN will not be permitted.
In case of cancellation of IRN, GSTR-1 also will be updated with such ‘cancelled’ status.

35

What if I have generated an Invoice by mistake and it is not cancelled within 24 hours?

One may cancel in its Books of Accounts

Do not report the Invoice in your GST Returns i.e., Manually delete in GSTR-1

Such above situation would result into differences between GST portal and IRP and same would be flagged and reported to concerned jurisdictional officer thereafter justification on reasonable basis to be provided to department

36

Whether invoice raised as B2C, later customer provides GSTIN could be amended to be B2B?

There is no option to make amendments in e-invoicing, one needs to issue GST credit note [within next Sept of FY for which invoice pertains] then raise new B2B e-invoice

37

While Issuing debit note or credit note should upload all the original linked invoice details to Portal? If yes how many digits schema allows?

In accordance with Sec 53(1A) taxpayer should provide reference of Invoices against which a particular credit note has been issued.

However as per the E-Invoicing schema it's not mandatory to give the reference of invoices against which Credit notes or debit notes were issued, if the same need to be provided same can be updated with max 16 digits

38

How to disclosed TCS under Income Tax 1961 collected in invoice raised in ERP on which GST is not levied as TCS is interim levy and not tax?

In e-invoice schema, there is particular column for TCS collected by suppliers under Income Tax Act, 1961.
One could enter such details in field “other charges (Invoice Level)”
It could be noted that e-invoicing requires details w.r.t disclosed in GST Tax invoice other details could be added when issuing final to recipient.

39

How to disclose any other amount collected in invoice which do not have any GST Impact?

One could enter such details in field “other charges (Invoice Level)”
It could be noted that e-invoicing requires details w.r.t disclosed in GST Tax invoice other details could be added when issuing final to recipient.

40

Is there any time limit within which one need to report an invoice to IRN

No such validation is kept presently.

41

Whether e-invoice is applicable for exempt supplies?

No e-invoice is applicable for only Taxable supplies to B2B and Exports [all supplies incl exempt]

42

Entities doing back dated accounting of invoices in subsequent month - Very common to account invoices by first week of the subsequent month;

This may not work now as e-invoicing is real time basis reporting
Back dated invoices may not be permitted
Reissue of the new invoice to the customer with current date & cancellation of the past invoice; - This have to looked upon case to case basis why back dated invoices are made then decisions need to be taken in line with law

43

What details of the E-Invoice should we save in ERP?

The acknowledgement number
Acknowledgement date
Invoice and QR code digitally signed by the IRP.

44

Until what time can one register an E-Invoice?

Any time before issuing invoice Recommended Within 48hrs / sec 31 compliance.

45

What is the maximum number of line items supported by an e-Invoice?

The maximum number of line items allowed per e-Invoice is 100.

Detention by department

46

Could goods be seized where e-invoice is not generated in case applicable?

Transportation of goods without a valid tax invoice can be a reason for the detention of goods and vehicles and fines will be also imposed
Invoice without QR code along with IRN embedded would be invalid under GST
Dept may contend that the intention here is to evade the taxes and may levy seize the goods

ITC by recipient

47

Procurement from vendor who is liable for e-invoice but issues normal invoice without IRN [i.e., e-invoice generated]

ITC would not be eligible in hands on recipient - as such invoice without IRN would be invalid and treated as only piece of paper having no value under GST and not tax invoice
Suggested to take a declaration from vendor on applicability, if not applicable as on date then they need to inform in advance for its applicability

48

How to check whether a particular supplier is supposed to issue an e -invoice?

The taxpayer needs to ensure applicability of E-invoicing r/w rule 48(4)
 

One can search the status of enablement of a GSTIN on e-invoice Portal

https://einvoice1.gst.gov.in/Others/EinvEnabled
 

The status of enablement of GSTIN is based on GSTR-3B reported turnover
 

However, it has to be noted that enablement status on e-invoice portal doesn’t mean that the taxpayer is supposed to do e-invoicing. Taxpayers need to check applicability on actual turnover

As there could be instances that turnover was excess reported in returns etc.in such case actual needs to be seen rather than GSTR-3B reported data.
 

This listing of GSTINs is solely based on the turnover of GSTR-3B as reported to GST System. It may contain exempt entities or those for whom e-invoicing is not applicable for some other reason. So, it may be noted that enablement status on e-invoice portal doesn’t mean that the taxpayer is supposed to do e-invoicing. If e-invoicing is not applicable to a taxpayer, they need not be concerned about the enablement status and may ignore it.

This information will be eventually made available through “Search Taxpayer”/“Know Your Supplier” Sections on GST portal also

49

Precautions to be taken as a recipient/customer

Take a declaration from suppliers on applicability of e-invoicing from suppliers as follows along with indemnity/reimbursement/cost recovery clauses etc
Where e-invoicing is applicable as on date:
"Our aggregate turnover exceeds INR 500/100 crore and hence, we are covered within the ambit of E-Invoicing provisions under GST effective from 1st October 2020/1st January 2021. Accordingly, we hereby agree to issue E-Invoices duly complying with the requirements specified under the GST law to us from 1st October 2020/1st January 2021."
Where e-invoice is not applicable as on date:
"Our aggregate turnover does not exceed INR 500/100 crore and hence, we are not covered within the ambit of E-Invoicing provisions under GST effective from 1st October 2020/1st January 2021. Further, it is hereby agreed that, when the said provisions are made applicable to us, we shall forthwith intimate you and issue E-Invoices duly complying with the requirements specified under the GST law to us from the relevant date."

50

After obtaining signed JSON (along with IRN/QR Code) from e-invoice portal and
while issuing invoice copy to the recipient, whether supplier’s signature / digital
signature is required on invoice?

The requirement is governed by the provisions of Rule 46 of CGST Rules, 2017

Financial Year

Turnover

Applicable from which year?

2017-18

600

No

2018-19

350

No

2019-20

250

No

2020-21

450

Yes [w.e.f. 01.10.2020] *

2021-22

100

Yes

* as in FY 2017-18 turnover is more than 500 crs

Scenario - 2

Financial Year

Turnover

Applicable from which year?

2017-18

95

No

2018-19

75

No

2019-20

82

No

2020-21

600

No^#

2021-22

50

Yes [w.e.f. 01.04.2021]

^# As in any of previous FY turnover was <100>

Scenario - 3

Financial Year

Turnover

Applicable from which year?

2017-18

150

No

2018-19

280

No

2019-20

109

No

2020-21

120

Yes [w.e.f. 01.01.2021] ^#

2021-22

60

Yes

^# As in previous FY turnover was more than 100 crs but less than 500 crs

Scenario - 4

Financial Year

Turnover

Applicable from which year?

2017-18

80

No

2018-19

95

No

2019-20

98

No

2020-21

120

No

2021-22

65

Yes [w.e.f. 01.04.2021]