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Writer's pictureAsif Hussain

Electronic Invoice System in GST

Updated: May 11, 2023

Invoice is a critical document, and e-invoicing is a related reform, it is critical for businesses to fully understand it and plan accordingly.


E-invoicing under GST

What is e-invoice?


The B2B invoices that are electronically uploaded and authorized by the designated site are called "Electronic invoicing" or "e-Invoice".


Who are covered under e-invoicing?


Annual Turnover

New deadline for mandatory e-invoicing implementation

Exceeding 500 crore

1st Oct 2020

Exceeding 100 crore

1st Jan 2021

Exceeding 50 crore

1st Apr 2021

Exceeding 20 crore

1st Apr 2022

Exceeding 10 crore

1st Oct 2022

Exceeding 5 crore

​1st Aug 2023

So, now it means that any person who's turnover was greater then 5cr in any of last 5 FY, needs to issue E-invoice from 1st Aug 2023.

What types of businesses will be able to use e-invoices?


All businesses that are GST-registered and issue B2B invoices will be required to use electronic invoicing.


What supplies are covered by e-invoicing?


Supplies to registered individuals or organizations (B2B), Supplies to Special Economic Zones (SEZs) (with/without payment), Exports (with/without payment), and Deemed Exports are now covered by e-invoice.


Is e-invoicing applicable to Nil rated or wholly exempted supplies?


No, a bill of supply is issued instead of a tax invoice in these cases.


Benefits of e-invoicing:


  • Reduces the need to report the same invoice details in multiple forms. It's just a one-time upload, and everything will be pre-populated as needed.

  • Only the transporter details need to be updated since Part-A of the e-Way bill will be automatically captured.

  • When invoices are uploaded, the B2B details are automatically captured in the GSTR-1 return.

  • Significantly reduced input credit verification challenges because the same data will be reported to both the tax department and the buyer in his inward supply (purchase) register (GSTR-2A).


Link for e-invoicing applicability calculator:


We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.


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- Jimmy Spithill


Regards

Asif Hussain

+91-96323-32850

umang@caumang.com


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