E-Invoicing Eligibility- Know Who is Eligible for E-Invoice and How to check E-invoicing Eligibility on IRP

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Updated on 8th March 2021: As per the recent CGST Notification 05/2021,  entities having turnover above Rs. 50 Cr. are required to generate E-Invoice from 1st April 2021.
E-invoicing is mandatory for taxpayers with a turnover greater than INR 500 crores in a financial year with effect from 1 October 2020. In the latest notification announced by the GST council of India, e-invoicing will be made mandatory for all businesses from 1 April 2021. Under this process, all the businesses/taxpayers have to submit their documents like GST invoices, debit/credit notes, reverse change invoices, export invoices, etc. to a centralized Government portal called the Invoice Registration Portal (IRP). Thereafter the IRP will validate the data of these invoices and generate an Invoice Reference Number and QR code for the same. It will get digitally signed the invoice and send back an e-Invoice to the taxpayers electronically.

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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