E-Invoicing Eligibility- Know Who is Eligible for E-Invoice?

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Recent Updates on e-Invoicing:

11 October 2022

According to the most current e-invoicing update, organizations with a yearly revenue of more than 5 crores may begin implementing the next level of e-invoicing as of January 1, 2023. By the end of the following fiscal year, the system could be expanded to include companies with a revenue of more than Rs. 1 crore.

16 August 2022

The Central Board of Indirect Taxes and Customs (CBIC) made a significant announcement on August 16, 2022, stating that taxpayers whose yearly turnover exceeds Rs. 10 crores are permitted to use the e-invoicing system.

GST-registered people are required to upload all B2B invoices to the invoice registration portal to use the e-invoicing system (IRP). The IRP generates and provides the user with a unique Invoice Reference Number (IRN), an electronic invoice that has been digitally signed, and a QR code.

4th July 2022

According to a government official, in order to lower the barrier from the existing Rs 20 crore, the government intends to make GST e-invoicing mandatory for businesses with a turnover of Rs 10 crore and higher from 1-10-2022.

24th February 2022

According to Notification No. 1/2022, the e-Invoicing system will be made available to businesses with an annual turnover of more than Rs. 20 crore and up to Rs. 50 crore as of April 1, 2022.

30th June 2021

The CBIC has issued a notification proposing to waive the penalty imposed for non-compliance with dynamic QR code regulations for B2C invoices between December 1, 2020, and September 30, 2021.

1st June 2021

A government department and local authority are exempt from the e-invoicing system, according to CBIC’s Central Tax Notification No. 23, dated June 1, 2021.

30th March 2021

The CBIC has published a notification to waive the fine for failing to follow the rules for dynamic QR codes for B2C invoicing between 1 December 2020 and 30 June 2021, provided that the person in question complies with the notification’s requirements starting on 1 July 2021.

Who is Eligible for e-invoicing?

The e-Invoicing process has to be followed by every taxpayer who:

  • Has a turnover of INR 100 crores (as per the latest update of 1st January 2021) or more (based on PAN card) in the previous financial year.
  • B2B Issued invoices.
  • Those who Supplies goods or services or both to a registered person.

Note:

  • Taxpayers involved under Exports and Deemed Exports are only liable for e-Invoices.
  • Suppliers to SEZs will be eligible under e-Invoicing.
  • SEZ Developers who have the defined turnover are required to generate e-Invoices.
  • DTA units are required to issue e-Invoices if all the guidelines are met.

Who are exempted from e-invoicing?

The following categories of taxpayers are exempted from the e-Invoicing process:

  • Any Insurance Company.
  • Banking Company including a Financial Institution, including a Non-Banking Financial Company (NBFC)
  • Goods Transport Agency (GTA) transporting goods by road in a goods carriage services.
  • Any transport service provider agents, who are providing passenger transportation service
  • A registered person who is providing services of – admission to an exhibition of cinematograph films in multiplex screens.
  • Special Economic Zone (SEZ) units
  • Free Trade & Warehousing Zones (FTWZ)

Note:

  • B2C invoices issued by notified persons are not under the provision of e-Invoicing currently.
  • E-Invoicing is not applicable for the Entry of import Bills.
  • When notified persons receive supplies:
    • From an unregistered person under GST (attracting reverse charge) or through the services of import, e-invoicing is not applicable.

How to Check E-Invoicing Eligibility on IRP?

Taxpayers can view eligibility of a GSTIN on the e-invoice portal. To do the same follow the given steps:

Step 1: Firstly go to https://einvoice1.gst.gov.in/

Step 2: Under the ‘Search’ tab, select ‘e-Invoice Status of Taxpayer’.

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Step 3: Enter your ‘GSTIN’ and ‘Captcha’ code then click on ‘Go’.

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Step 4: View the submitted details on the IRP.

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Note: In case of person is not registered with the e-invoice portal then firstly they need to register themselves on the portal.

How to Do Registration on IRP?

Step 1: Vist https://einvoice1.gst.gov.in/

Step 2: Under the Registration tab, select ‘e-Invoice Enablement’.

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Step 3: Add the required details and proceed.

  • Mention the GSTIN & captcha code.
  • Then click on ‘Go’

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FAQ’s

No, e-invoicing will not be applicable as they are exempted as an entity as a whole.

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

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

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