By CA Vipul Khandhar
- E Invoice mandatory w.e.f.01.10.2022:
Every registered taxable person whose aggregate annual turnover exceeds Rs.10 Cr in any of the financial year since 2017-18 is liable to issue e-invoice by way of uploading its tax invoice in json file on Invoice Registration Portal (IRP) in accordance with e-invoice schema in INV-01 and getting back digitally signed json from IRP with IRN and QR Code.
Registered person whose aggregate annual turnover in any preceding financial year from 2017-18 onwards exceeds Rs. 10 Cr are liable for e-Invoicing. E-Invoicing applies to supply of goods or services or both.
- E-Invoicing applies to export (with or without payment) also.
- Applies to B2b transactions only.
- Applies to supplies to SEZ Unit
- Applies to Deemed Export Documents covered under e-Invoicing.
- Tax Invoice Debit Note Credit Note Exemption from e-Invoice Entity Level Exemption – As per Notification No. 13/2020 CT dt 21.03.2020:
- Registered persons covered by sub-rule (2), (3), (4) & (4A) of Rule 54 are exempt from issuing e-invoice, such as – Insurance, Banking or Financial Institution including NBFC [Rule 54(2)].
- Goods Transport Agency transporting goods by road [Rule 54(3)].
- Supplier of passenger transportation service [Rule 54(3)].
- Person supplying services by of admission to exhibition of cinematographic film in multiplex screen.
- SEZ Unit as per Notification No. 61/2020 CT dt 30/07/20 exempted.
- Following document are not covered under e invoice applicability:
– Bill of Supply Self Invoice in case of RCM u/s 9(4),
– Advance Payment Delivery Challan,
– Financial Debit/ Credit Note.
- E invoice not applicable on following transaction:
– B2c transactions Non-GST Supplies (alcoholic liquor, Petrol, Diesel etc),
– Bill of Entry in case of Import Nil rated or exempted supplies.
- Consequence on non issuance of e-invoice:
– When required Invoice issued in any manner other than in terms of rule 48(4) shall not be treated as valid invoice.
– Disentitle the recipient from claiming ITC.
– It may also attract penalty for not issuing valid tax invoice u/s 122.
Amendment And Cancellation Of E Invoice
E-Invoice can be cancelled on the IRP within 24 hours of generation of the IRN. This is mainly because the IRP servers do not store e-Invoices for more than 24 hours. However, if an e-Way Bill is already generated for the IRN, it cannot be cancelled.
Partial cancellation of e-Invoice is not possible; hence, the whole of the invoice would have to be cancelled. Moreover, any amendments of any sort cannot be done on the IRP as there is einvoice cancellation time limit. In case any changes are necessary for the invoice details reported on the IRP, then, it can be through the GST portal while filing GSTR-1.
If an IRN is cancelled, then, the same invoice number cannot be used again to generate another IRN. If it is used again, the invoice will be rejected by the IRP, when reported. This is because, IRN is a unique reference number for individual invoices generated based on the supplier’s GSTIN, document/invoice number, type of document & financial year it is issued in.
If an e-way bill for an IRN is active, cancellation of IRN will not be permitted by the IRP.
In case an IRN is cancelled, then GSTR-1 will also be automatically updated with such ‘cancelled’ status.
If an invoice has to be cancelled after 24 hours, the taxpayers can manually cancel the same on the GST portal before filing the GST returns.
Amendments to an e-Invoice are allowed only through the GST portal as per the provisions of GST law.
- Taxpayer can avail ITC for the period 01.04.2021 to 31.03.2022 uptill 30th September-2022:Time Blocking of GST ITC:
Section 16 of Central Goods & Services Tax Act 2017, the ITC for the invoices relating to Financial Year (FY) 2021-22 could be claimed till September 2022.
The taxpayer is obligated to perform/ update the reconciliation of ITC available in GSTR-2A/2B (till date) with ITC claimed in GSTR-3B and take action for mismatch of ITC for preventing any loss of ITC for invoices pertaining to FY 2021-22.
- Credit Notes:
- As per section 34 of CGST Act 2017, the related credit notes of any supply of FY 2021-22 could be notified till the last date of GSTR-3B for September 2022. Hence the credit notes would be concerned with the mentioned duration and must be given on 30th September 2022 or before.
- Hence the credit notes concerning the specified duration must be provided on the date 30th September 2022 or prior to that notified in the GSTR-1 form for claiming the requisite GST adjustment.
- Indeed when there would be any credit notes that would be given with respect to the output GST e-invoicesbut not shown in the GST returns, that is required to be notified in GSTR-1 for the duration, not after September 2022.
- GST Invoices Rectification:
Any revision in the invoices issued for the outward supplies related to FY 2021-22 could be incurred till the last date of filing the return for September 2022.
Additionally, the invoices uploaded in the GST returns for the FY 2021-22 could be revised till the furnishing of the GSTR-1 form in September 2022, the company must execute the reconciliation of the details shown in GST returns and recorded in the books of accounts. Once reconciled the difference must be amended in GSTR-1 for the month, not after September 2022.
- AAR & Judicial Decisions:
(i) AAR On Transformers not forms part of WOEG and are leviable to GST @ 18%:
(Applicant – Suzlon Energy Limited)
The specially designed Transformers for Wind Operated Electricity Generators which are meant to perform dual function of Step Down and Step Up manufactured by Suzlon and supplied to the customers of Suzlon as a part of Wind Operated Electricity Generator be treated as part of Wind Operated Electricity Generator and falls under Sr. No. 234 in Schedule-I to Notification No. 01/2017-Central Tax (Rate) dated 28th June, 2017 read with Notification No. 1/2017- State Tax(Rate) dated 30th June, 2017 and liable to Central GST at the rate of 2.5% along with Gujarat State GST at the rate of 2.5% up to 30th September, 2021 and 6% each towards CGST and SGST with effect from 1st October, 2021 by virtue of omission of the said entry and addition of Entry No. 201A to Notification No. 01/2017-Central Tax (Rate) dated 28th June, 2017 vide Notification No. 08/2021-Central Tax (Rate) dated 30th September, 2021 read with Notification No. 08/2021-State Tax(Rate) dated 30th September, 2021.
(ii) AAR On Security services by LLP to any registered person are not covered by RCM:
(Applicant –A S & D Enterprise LLP)
The services provided by the applicant, limited liability company partnership are not covered under the entry 14 of the Notification No. 13/2017-CT(Rate) dated 28.06.2017 and Notification No. 29/2018 – dated 31.12.2018. The reverse charge mechanism for the levy of tax under section 9(3) is not applicable in the present case).
This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.
(Author is a well known Chartered Accountant Practicing in the filed of direct and indirect taxation)