CA - Ankg & Associates

Central Board of Indirect Taxes & Customs vide its Notification No.05/2021 dated 08th March, 2021, has reduced the Turnover threshold for applicability of E-Invoicing provisions from Rs.100 crore to Rs.50 crore with effect from 01st April, 2021.

It is to be noted that E-Invoicing under GST was made mandatory w.e.f 01st January, 2021 for those whose aggregate turnover exceeds Rs. 100 crore in any of the preceding financial year from 2017-18 onwards.

So now as per the latest notification dated 08/03/2021 as issued by CBIC, Registered Person whose aggregate turnover in any of preceding financial year from 2017-18 onwards, exceeds Rs.50 crore is notified as such class of registered person who shall prepare invoice and other prescribed documents, in terms of sub – rule 4 of Rule 48 of the said rules in respect of supply of goods or services or both to a registered person or for export.

Rule 48 of CGST Rules prescribe manner of issuing invoice. Sub Rule (4) states that invoice shall be prepared by such class of registered persons by including such particulars contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common GST Portal .

If such invoice is not issued in the manner prescribed, then that invoice will be treated as an Invalid invoice.

Specific category excluded from compliance to E- Invoice are :-Special Economic Zones units

a)Insurer or a banking company or a financial institution, including a non-banking financial company

b)Goods transport agency supplying services in relation to transportation of goods by road in a goods carriage

c)Suppliers of passenger transportation service

d)Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens

To Download Notification No. 05/2021 dated 08/03/2021 , click below