The Indian GST Council approved the standard of e-invoice in a meeting held on 20 September 2019.
On 13 December 2019, the government issued Notification No 68/2019 CT to 72/2019 CT, laying down legal road map for e-invoicing.
E-invoicing has become available voluntarily from January 2020, via their Invoice Registration Portal.
E-invoicing will become mandatory from April 2020 for B2B transactions.
Applicability of e-invoicing provisions from 1 April 2020
Supply(ies) to Registered persons (B2B supplies):
- A registered person whose aggregate turnover in a financial year exceeds INR 100 Crs, will be required to prepare an ‘e-invoice’ in terms of Rule 48 (4) of CGST Rules, 2017 where Form GST INV- 01 containing various particulars is required to be uploaded on specified GST portal to generate IRN (Invoice Reference Number);
- A list of 10 websites is notified as Common Goods and Services Tax Electronic Portal for the generation of the IRN;
- Invoices not issued as above shall be treated as invalid under GST
Supply(ies) to Unregistered persons (B2C supplies):
- Further, an invoice issued to an unregistered person i.e. B2C by a registered person whose aggregate turnover in a financial year exceeds INR 500 Crs, is required to contain a QR Code;
- Where such registered person is paid via the application of a Dynamic QR Code made available to the recipient through a digital display, such invoice containing cross reference of the payment via the Dynamic QR code shall be deemed to meet the criteria
Some of the benefits of the new e-invoicing system include:
- The Invoice Reference Number (IRN) will be unique to each document,
- It can be expected that there will be a reduction in input credit verification issues – the same data will be reported to the tax department and in the buyers purchase register,
- It is also expected there will be a reduction of tax evasion by having a complete trail of B2B
invoices and will reduce fake invoices.