E-invoice Mandate: E-invoicing Changes, Exemptions, Documents, Transactions Covered

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E-invoice Mandate E-invoicing Changes,
Exemptions, Documents Covered, Transactions and
more
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Changes in the E-invoicing Mandate over the years

• E-invoice mandate has been extended to companies
  with a turnover exceeding Rs. 5 crores from
  August 1, 2023. E-invoicing under GST is crucial
  for organizations now more than ever and the
  consequences of non-compliance with e-invoicing
  could lead to heavy penalties.

• The e-invoice mandate began a phased
  implementation in October 2020, starting with
  companies earning over Rs. 500 crores. It was
  then extended in January 2021 to businesses
  turning over Rs. 100 crores. Eventually,
  organizations with an aggregate turnover of over
  Rs. 50 crores were also required to follow the
  mandate from April 2021. In a years time, in
  April 2022, it was extended for organizations
  earning over Rs. 20 crores. The latest change in
  the e-invoice mandate now requires companies with
  a revenue of over Rs. 10 crores to comply with
  the mandate.

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GST Notifications Applicable Dates for
E-invoicing Mandates
Turnover GST Notification No. Date Effective From
INR 500 Crores 61/2020 01/10/2020
INR 100 Crores 88/2020 01/01/2021
INR 50 Crores 05/2021 01/04/2021
INR 20 Crores 01/2022 01/04/2022
INR 10 Crores 17/2022 01/10/2022
INR 5 Crores 10/2023 10/05/2023
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What if the Turnover Limit in the E-Invoice
Mandate is Crossed?

• To help streamline the invoicing process of small
  and medium businesses, the latest extension of
  the e-invoice mandate included organizations with
  revenues over Rs. 10 crores.
• If your business is crossing the e-invoicing
  turnover limit, then you must ensure that your
  systems and the accounts team is prepared. An
  e-invoice solutions provider is recommended to
  ease up your execution.
• Read the detailed article to understand better
  Crossed the e-invoicing turnover limit? Here are
  5 things to do next!

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What transactions are covered under E-invoicing?

• B2B (Business to Business)
• B2G (Business to Government)
• SEZ developer transactions
• Export transactions Sales or services to
  customers outside India.
• Deemed Supply (say to a Distinct person)
• Deemed Exports
• Credit notes
• Debit notes

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Are There Any Exemptions from E-invoice Mandate?

• According to Rule 48(4), the following classes of
  people are exempt from the e-invoice mandate and
  need not generate an e-invoice under GST.
• Banks, Insurance Companies, and Financial
  Institutions including but not limited to NBFCs.
• Goods Transport Agency
• Passenger Transport Services
• Supplier of Services by way of admission to the
  exhibition of films.
• Special Economic Zones (SEZ) Units. (Note
  E-invoicing is applicable to Economic Zone
  Developers)

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How Does E-Invoice Under GST Help a Business?

• The e-invoice mandate is meant to ease up the
  legal and financial aspects of a business. Its
  core benefits are
• Reduced gap in GST Reconciliation and mismatch
  errors
• Reduced data-entry error, since e-invoices can be
  read on several platforms
• Real-time invoice tracking is possible
• Faster Input Tax Credits (ITC) verification
• Reduced fraudulent activities

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How is an E-Invoice Under GST Generated?
You can use IRIS IRP to generate e-invoices for
your business.

• The taxpayer's system itself generates an
  invoice, and the invoice data is subsequently
  sent to an Invoice Registration Portal like IRIS
  IRP for authorization. Once authorized, the
  invoice data is updated with an official digital
  signature and a QR Code along with Invoice
  Registration Number (IRN). We refer to this as an
  E-Invoice.

• With IRIS IRP, you can prepare a single e-invoice
  via our tool or bulk generate IRN through the
  excel utility, pull IRN in your ERP via API
  Integration or custom print invoices using an
  awesome cloud platform!

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• If you are a small business owner (MSME/SME)
  IRIS IRP helps you to jumpstart your e-invoicing
  using the offline excel utility tool i.e. MS
  Excel interface. You can send Invoice Data to IRP
  in bulk and generate e-invoices real-time! Also,
  get to generate e-invoices and e-way bills on a
  single platform.
• If you are a large business owner IRIS GST
  E-invoicing is the best option for you - It is
  the fastest and easiest way to generate
  e-invoice. There are multiple options to generate
  IRN via IRIS E-invoicing. You can use APIs, and
  get a bulk upload facility or you can even go
  with SFTP or manual upload of invoices.
• If you are a solution provider yourself IRIS IRP
  calls all ERP providers and system integrators to
  design a seamless user journey for your customers
  using IRIS IRP to build a robust and error-proof
  e-invoice compliance. We offer Core and Enhanced
  APIs for e-invoice generation.

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What are the documents that are to be reported
for E-invoicing?

• The taxpayers need to report the following
  documents to the e-invoice system.
• Invoice by Supplier
• Credit Note by Supplier
• Debit Note by Supplier
• Thus, Bill of Supply and Delivery Challan/Job
  Work Challan need not be reported under
  E-Invoicing.

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E-invoice Printing

• Under the e-invoice mandate, taxpayers will
  continue to generate their specific GST invoices
  (covered under the mandate) on their own with the
  help of their Accounting/Billing/ERP Systems.
  Once generated, the invoice data will now have to
  be sent to Invoice Registration Portal (IRP).
• Read more about the mandatory fields, optional
  fields and template of an e-invoice here
  E-invoice Printing.
• Source Of Article - einvoice6