E-Invoicing has become mandatory for GST registered taxpayers having aggregate turnover of more than Rs.20 cr. from 01.04.2022.
23rd March 2022
To All Members,
Sub: E-Invoicing has become mandatory for GST registered taxpayers having aggregate turnover of more than Rs.20 cr. from 01.04.2022.
Dear Friends,
Placed below please find email received from our Mr. S.C. Kamra, Advocate on the above subject.
As advised by Mr. Kamra, with effect from 1st April, 2022, all registered taxpayers having PAN India turnover / gross receipts of more than Rs.20 crores in any of the preceding financial years starting from 2017-18 will be covered under e-invoicing regime, the tour operators and travel agents shall also come within the ambit of e-invoicing. However, the following categories of taxpayers are exempted from e-invoicing procedure even after 01.04.2022:-
(a) Taxpayers with aggregate turnover in a financial year not exceeding Rs.20 cr. on PAN India basis.
(b) Suppliers of passenger transportation services.
(c) Goods transport agency engaged in transportation of goods by road.
(d) Insurance company, banking company or a financial institution including NBFC.
(e) Multiplex screens engaged in exhibition of cinematograph films.
1. The e-invoicing is mandatory for B2B billing only. In other words, both the supplier and recipient should be registered as GST taxpayers. In the case of B2C billing, e-invoice would not be issued. In such a case, normal invoice prepared manually or through the billing software such as Tally or ERP, SAP etc. can be issued to the unregistered customer such as Foreign Tourist, Foreign Tour Operator (FTO) company etc.
2. The e-invoicing is also not required in the case of payment of GST under reverse charge mechanism. Wherever a registered taxpayer is required under law to pay GST on his own under reverse charge in respect of services obtained from notified persons, the taxpayer is required to issue invoice in his self name and upload the invoice in the GSTR-1 return which will determine the tax liability of the taxpayer for the month to which GSTR-1 relates. Such RCM invoices can be prepared manually or through internal billing software.
3. From the above basic provisions of e-invoicing, it is clear that the members of IATO still having turnover of above Rs.20 cr. in financial year 2017-18 / 2018-19 / 2019-20 / 2020-21 / 2021-22 need not engage in issuing e-invoices in respect of following transactions:-
(i) Billing to unregistered customers such as foreign tourists, FTOs etc. undertaking inbound tours.
(ii) Transportation of tourists / passengers by cab or bus (passenger transportation services).
(iii) Self-billing in the case of payment of GST under reverse charge.
Except the above transactions, the eligible members shall be required to issue e-invoice to other clients (B2B billing) from 01.04.2022 as mandatory requirement.
For any clarification or more details, please consult your Chartered Accountant/Taxation Advisor .
With regards,
Rajiv Mehra
President
……………………………………………………………
From: S.C.Kamra [mailto:sckamra@kamraandco.com]
Sent: 21 March 2022 13:25
Cc: admin@iato.in; rmehra@udaytour.com; rajnishkaistha25@gmail.com; sckamra@gmail.com; kamrashivam96@gmail.com
Subject: E-Invoicing has become mandatory for GST registered taxpayers having aggregate turnover of more than Rs.20 cr. from 01.04.2022
Dear Sir,
With reference to your email dt. 19.03.2022, we would like to clarify the e-invoicing procedure for registered taxpayers under GST as under:-
1. The GST Council in its 35th Meeting held on 21.06.2019 recommended the introduction of electronic invoices (e-invoices) in GST in a phased manner on a voluntary basis for online generation of B2B invoices. Initially it was decided to introduce e-invoicing mandatorily for all taxpayers with annual aggregate turnover above Rs.100 cr. from 01.04.2020.
2.However, sudden onset of COVID-19 pandemic delayed the implementation and it was decided by the Government that all registered persons having aggregate turnover of above Rs.500 cr. achieved in any of the financial years of 2017-18 or onwards, shall be required to issue e-invoice from 01.10.2020.
3.It is clarified that aggregate turnover includes turnover / receipts of all offices of the company under single PAN, across India. In other words, if a company has obtained GST registrations in different States in respect of its offices / branches / units, the turnover of all such offices or branches will be clubbed together for the purpose of computing the threshold limit of Rs.500 cr.
4. The e-invoicing provisions are contained in rule 48(4) of CGST Rules, 2017. These provisions are reproduced below for your ready reference:-
“(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 Services Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.
Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt a person or a class of registered persons from
issuance of invoice under this sub-rule for a specified period, subject to such conditions and restrictions as may be specified in the said notification.”
5. After launching of e-invoicing procedure for large taxpayers from 1st October, 2020, the Government gradually covered taxpayers in lower slabs with aggregate turnover above Rs.100 cr. from 01.01.2021. Thereafter the threshold limit was further reduced to Rs.50 cr. from 01.04.2021 and now from 01.04.2022, the Government has issued Notification no. 01/2022-CT dt. 24.02.2022 to cover all registered persons with aggregate turnover of more than Rs.20 cr. achieved in any of the financial years of 2017-18 and onwards, within the ambit of e-invoicing procedure.
6. Under e-invoicing system, taxpayers may create their GST invoices on their own accounting / billing / ERP system. These invoices are reported to “Invoice Registration Portal (IRP)” in a standard format notified as Form GST INV-1. The standard format is also known as ‘schema’. On reporting, IRP generate a unique “Invoice Reference Number (IRN)” and digitally sign the invoice. IRP also generates a QR code containing unique IRN along with certain other key particulars. While 64-character IRN need not be printed on the invoice, the QR code generated by IRP shall be printed on the e-invoice issued to the buyer. The QR code enables offline verification of the fact whether e-invoice has been reported on the IRP or not and whether the digital signature is intact or tampered with.
7. Since from 1st April, 2022, all registered taxpayers having PAN India turnover / gross receipts of more than Rs.20 cr. in any of the preceding financial years starting from 2017-18 will be covered under e-invoicing regime, the tour operators and travel agents shall also come within the ambit of e-invoicing. However, the following categories of taxpayers are exempted from e-invoicing procedure even after 01.04.2022:-
(a) Taxpayers with aggregate turnover in a financial year not exceeding Rs.20 cr. on PAN India basis.
(b) Suppliers of passenger transportation services.
(c) Goods transport agency engaged in transportation of goods by road.
(d) Insurance company, banking company or a financial institution including NBFC.
(e) Multiplex screens engaged in exhibition of cinematograph films.
8. The e-invoicing is mandatory for B2B billing only. In other words, both the supplier and recipient should be registered as GST taxpayers. In the case of B2C billing, e-invoice would not be issued. In such a case, normal invoice prepared manually or through the billing software such as Tally or ERP, SAP etc. can be issued to the unregistered customer such as Foreign Tourist, Foreign Tour Operator (FTO) company etc.
9. The e-invoicing is also not required in the case of payment of GST under reverse charge mechanism. Wherever a registered taxpayer is required under law to pay GST on his own under reverse charge in respect of services obtained from notified persons, the taxpayer is required to issue invoice in his self name and upload the invoice in the GSTR-1 return which will determine the tax liability of the taxpayer for the month to which GSTR-1 relates. Such RCM invoices can be prepared manually or through internal billing software.
10. From the above basic provisions of e-invoicing, it is clear that the members of IATO still having turnover of above Rs.20 cr. in financial year 2017-18 / 2018-19 / 2019-20 / 2020-21 / 2021-22 need not engage in issuing e-invoices in respect of following transactions:-
(i) Billing to unregistered customers such as foreign tourists, FTOs etc. undertaking inbound tours.
(ii) Transportation of tourists / passengers by cab or bus (passenger transportation services).
(iii) Self-billing in the case of payment of GST under reverse charge.
Except the above transactions, the eligible members shall be required to issue e-invoice to other clients (B2B billing) from 01.04.2022 as mandatory requirement.
Advised accordingly.
Thanks
S.C. KAMRA
Advocate
Mob. 98100 - 72662Office Address :
S.C. KAMRA & Co.
Advocates & Solicitors
B-2/210, (Basement)
Safdarjung Enclave
New Delhi - 110029
Landline PH : 011-26161079, 26185504, 26183763
Email ID : sckamra@kamraandco.com