E-invoice is implemented in India for taxpayers whose turnover is above Rs 5 crores and below Rs 10 cross from the first of August 2023. e-invoice is implemented in a phased manner in India as the taxpayer can adapt to the new age requirements. The implementation process started in October 2020. Initially started with taxpayers having turnover above Rs 500 Crore and in a phased manner from last three years it has been reduced from Rs 500 crores to Rs 5 crores.
In this blog, we will try to understand for which transactions e-invoices must be issued, how is it to be issued, and by when it is required to be issued along with the implications of non-issue of e-invoice from the supplier’s perspective and the recipient’s perspective
- E-invoice is required to be issued for the following transactions
- B2B Transactions
- Supplies to the Government ( State & Central), Local Authorities etc.,
- Is an E-invoice required to be issued for all documents?
No, it must be issued for the following documents only
- Tax Invoice
- Debit Note
- Credit Note
- Is E-invoice also required to be issued for the Supply of Services?
Yes, it must also be generated for the supply of services.
Read More: E invoicing FAQs
- Is e-invoice required to be issued for all types of goods?
No, it must be generated only in the case of taxable goods. In the case of exempted goods, it is not required to be issued.
- Can i issue an e-invoice with taxable and exempted goods together?
No, in such cases, you need to issue two documents. e-invoice for the supply of taxable goods and Bill of Supply for the exempted goods.
- Am i required to issue an e-waybill also in the case of the supply of goods?
Yes. e-waybill is also needs to be generated in the case of the supply of goods if the value of the goods being moved is above Rs 50,000 and transported by a motorized vehicle.
- Is e-invoice required to be issued for export transactions?
Yes, it must be generated for export transactions.
- Is an e-invoice required for supplies made to Government/Local Bodies registered exclusively for deducting GST TDS?
Yes, e-invoice must be issued for supplies made to Government/Local Bodies registered exclusively for deducting GST TDS.
- Can I cancel the e-invoice?
Yes, you can cancel the e-invoice, but there should not be any active e-waybill assigned to the e-invoice.
- Within how many hours of the e-invoice generation can I cancel the same?
It can be cancelled within 24 hours of the generation of e-invoice on the Invoice Registration Portal.
- Can I alter the tax invoice number, amount, date, or any other values after the e-invoice generation?
No, you cannot change information on the e-invoice once it is generated.
- What is the way to alter or change the information after the generation of e-invoice?
The best way is to issue a credit note or debit to rectify the mistake.
- Is carrying the physical copy of the e-invoice and the e-waybill mandatory?
No, a physical copy of the e-invoice is not mandatory; the person who is carrying the goods can carry the QR code in his smartphone; this should be sufficient.
- Can I avail the input tax credit if my supplier is required to issue an e-invoice but has not issued it and I have paid taxes to the supplier along with the basic amount?
No, you are not eligible to avail the input tax credit if the supplier is required to issue an e-invoice and he has not generated the same. For availing of the input tax credit, the essential condition is tax invoice is a must, and in this case, a tax invoice will not be treated as an e-invoice.
The above are some of the fundamental questions any taxpayer will have about e-invoices. CaptainBiz recommends following the e-invoice provisions as a supplier or a recipient. It is more critical for recipients, as the input tax credit can be disallowed. Currently, there is no restriction on the generation of e-invoices; CaptainBiz strongly recommends reaching out to your supplier and insisting on the e-invoice.