CBIC prescribes Applicability of E-Invoice from 1st October 2020

The Central Board of Indirect Taxes (CBIC) has recently confirmed the date of Applicability of E-Invoicing Regime under GST from 1st October 2020 onwards via Notification No.61/2020-CT dated 30th July 2020.

CBIC has now changed the limit of turnover earlier specified by it for Taxpayers Required to Issue Invoice with Invoice Reference Number (I.R.N.) from E-Invoice System.Taxpayers with turnover exceeding Rs. 500 Crores in a financial year are required to Generate E-Invoice as against Taxpayers having Turnover exceeding Rs.100 Crores in a Financial Year as prescribed earlier by CBIC.

For Starters, E-Invoicing System was introduced via Notification No.70/2019-CT dated 13th December 2019 by CBIC for Taxpayers having turnover exceeding Rs.100 Crores in a Financial Year from 1st April 2020.

Due to Covid-19 Pandemic and the resulting disruptions in business operations, CBIC deferred the applicability of E-Invoicing Regime from 1st October 2020 onwards instead of 1st April 2020 via Notification No.13/2020-CT dated 21st March 2020 except for Taxpayers involved in Business of Insurance, Banking including NBFC, Goods Transportation Agency(GTA), Passenger Transportation, Cinema Theatres as prescribed in Sub-Rule (2), (3), (4) & (4A) of Rule 54 of CGST Rules, 2017. However, It didn't change the turnover limit of taxpayer but, with the latest notification, CBIC has increased the limit to Rs.500 Crores.Now Taxpayers having Turnover exceeding Rs. 500 Crores would be required to generate E-Invoice from 1st October 2020.

The Recent Notification also excludes Units located in Special Economic Zone (SEZ) even if their turnover exceeds Rs.500 Crores in a financial year.

This is a welcome move by CBIC, since, due to Covid-19 Pandemic, Small Scale Taxpayers are finding it difficult to survive and since E-Invoicing Implementation required certain level of expenditure on Taxpayers' Part for Complying with E-Invoice Regime and its requirements.

In Our Next Article, We will Discuss in Detail about E-Invoicing System and the schema template prescribed by CBIC for generating Unique Code i.e. Invoice Reference Number of 64 Digits from E-Invoice Portal.Stay Tuned.

Source: www.cbic-gst.gov.in

Disclaimer: TaxAvant is meant purely for the educational purpose of Tax Laws and Regulatory Updates. It contains only general information about tax-related matters. It is not professional advice, and should not be treated as such. This Blog should not be substituted for professional advice. For Specific Queries, Please post in the comments section.