First of all, it is important to understand that e-invoice is not applicable for all registered persons under GST. The categories of person on whom e-invoice is not applicable are as follows:

• 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 (E-invoicing is applicable to Economic Zone Developers)
• A government department and Local authority
• OIDAR i.e. person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient

Therefore, all persons either issue B2C invoices or they fall in the above-mentioned categories, are exempted from e-invoice.

E-invoice has been implemented phase-wise for reporting B2B invoices. Only the large businesses were targeted initially to start with the e-invoice system, and gradually, in a phased manner, smaller businesses have been brought into its scope by reducing the turnover limit.

The applicability of e-invoice based on the turnover has been given below:

Therefore, w.e.f. 1^st August 2023, all businesses with annual turnover exceeding five crore rupees shall mandatorily issue e-invoice. Further, it should be noted that turnover for the purpose of determining the eligibility of e-invoice means turnover of all GSTINs under a single PAN for any of the financial years from 2017-18 onwards.

If the applicable provisions for e-invoice are violated, two types of penalties may be levied:

• Penalty for failure to create an e-invoice: If a person to whom e-invoice applies, fails to generate an e-invoice, the penalty would be equal to either 100% of the tax owed on the supply or Rs. 10,000, whichever is greater.
• Penalty for incorrect e-invoice: If an e-invoice is created improperly, penalty equal to Rs. 25,000 per invoice shall be levied.

With the increasing litigation under GST, various notices are being issued levying penalty for non-compliance of e-invoice provisions. Hence, it is important to check the eligibility criteria and turnover threshold to determine whether e-invoice is eligible to a person or not for the period under dispute.

Also read our other articles:

https://gstplatform.com/gst-return-revision/

https://gstplatform.com/no-itc-reversal-for-gstr2a-mismatch-says-supreme-court/

https://gstplatform.com/return-filing-cannot-be-denied-at-any-cost-says-high-court/

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Section 128 of Finance Act 2020 is as follows :

Read Also : New TDS rates from 14.05.2020

In section 140 of the Central Goods and Services Tax Act, with effect from the 1st
day of July, 2017,—
(a) in sub-section (1), after the words “existing law”, the words “within such time and” shall be inserted and shall be deemed to have been inserted;

(b) in sub-section (2), after the words “appointed day”, the words “within such time and” shall be inserted and shall be deemed to have been inserted;

(c) in sub-section (3), for the words “goods held in stock on the appointed day subject to”, the words “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted;

(d) in sub-section (5), for the words “existing law”, the words “existing law, within such time and in such manner as may be prescribed” shall be substituted and shall be deemed to have been substituted;

(e) in sub-section (6), for the words “goods held in stock on the appointed day subject to”, the words “goods held in stock on the appointed day, within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted;

(f) in sub-section (7), for the words “credit under this Act even if”, the words “credit under this Act, within such time and in such manner as may be prescribed, even if” shall be substituted and shall be deemed to have been substituted;

(g) in sub-section (8), for the words “in such manner”, the words “within such time and in such manner” shall be substituted and shall be deemed to have been substituted;

(h) in sub-section (9), for the words “credit can be reclaimed subject to”, the words “credit can be reclaimed within such time and in such manner as may be prescribed, subject to” shall be substituted and shall be deemed to have been substituted.

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CBIC has issued various notifications on 05.05.2020.Due date for GSTR9 and GSTR9C for FY 2018-19 has been extended. 

Read Also : RBI relief measures 

Eway bill expiry has been extended till 31.05.2020.

Full Details here : 

Notification

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Changes in Rule 36(4) 

The limit for taking input tax credit on eligible invoices the details of which has not been uploaded by supplier has been reduced from 20% to 10% . Now only 10% ITC of uploaded invoices will be allowed for not uploaded invoices.

This provision will be applicable from 01.01.2020.Invoices on or after 01.01.2020 would be covered under this new rule.

New Rule 86A- Conditions for utilizing Input Tax Credit

The proper officer may restrict the facility of utilizing your credit available in Electronic Credit Ledger if

1. The credit has been taken without actual receipt of goods or services.

2. The supplier is found to be non existent from any place of business for which GST registration is taken by him.

3. The recipient is found to be non existent from any place of business for which registration is taken.

4. The tax in respect of such invoices has not been paid to the government .

5. The invoices on the basis of which Credit has been claimed is not in possession of the person claiming such credit.

Read Also : CBIC Notifications for Changes

Upon hearing if you satisfy the officer that conditions as specified above are no longer valid, he may allow the use of such amount in credit ledger.

The facility to utilize the credit will be initiated after the expiry of one year from the date of such restriction

Read Also : ITC FORMS IN GST

Changes in GST Waybill Rules

In rule 138(E) , earlier only GSTR3B is required to be filed by the taxpayers for generating waybill. Now this condition has been extended. Now If GSTR3B or GSTR1 are not filed for two consecutive tax periods waybill shall be blocked.

In short, GSTR3B and GSTR1 must be filed for the generation of waybill from the GST portal.

Late fees waiver and levy on GSTR1

As a one time measure, if your GSTR1 has not been filed for any tax period from July 17 to November 2019, you can file GSTR1 from 19.12.2019 to  10.01.2020 without any late fees.

After 10.01.2020 , late fees shall be applicable for filing late GSTR1 . Amount of late fees will be Rs 50 or 20 per day subject to maximum of 10000 as the case may be.

Quoting of DIN mandatory

CBIC has made it mandatory for quoting DIN on every communication, notices, summons etc issued to you the tax officers including emails communication .

This is done to maintain record and audit trail of the communications and validate authenticity of such notices, summons etc.

GST E Invoice

GST E invoices will be mandatory for you from April 2020 if your turnover exceeds 100 Crores for B2B transactions.

If turnover exceeds 500 Crores printing of QR Code will also be required on invoices.

Read Also : GST NEW RETURN 

GSTR9 and GSTR9C date extension

The due date to file GSTR-9 , GSTR-9C , GSTR-9A for FY 21017-18 has been extended till 31.01.2020 and for FY 2018-19 till 31.03.2020.

CHANGE IN POLICY FOR NON FILERS

To improve the compliance , CBIC has issued SOP for filing of GSTR-3B. As per the procedure :

• A system generated SMS will be sent to the you for reminding to file GSTR-3B  3 days before the due date.

• Immediately after the due date is passed if you failed to file GSTR-3B , SMS will be sent again to remind you of non filing.

• After 5 days of passing of due date , GSTR-3A notice will be issued requiring to file GSTR-3B within 15 days of GSTR-3A notice.

• If you failed to file return within 15 days , proper officer will assess your tax on Best Judgement basis taking into account the details in GSTR1 , Waybill , etc.

• The order will be issued in GST ASMT 13 and summary will be uploaded in DRC07

• If you file the valid return within 30 days of such order the proceedings will be deemed to be concluded.

• If you failed to file the returns even after 30 days , recovery proceedings will be initiated against you as per the provisions of Act.

The post GST RECENT UPDATES appeared first on GST Platform .

GST E Invoices are going to be implemented in GST from April 2020.

The government has already notified the persons having turnover more than 100 crores as the class of person who shall make GST invoices electronically.

GSTN has come out with several Myths and Facts about the GST E Invoices.

Myth : Whether E Invoices is mandatory for all types of transactions.

Reality : No, At the present stage E invoices is required only for B2B transactions.

Myth : Whether E Invoice will increase the compliance for dealers.

Reality : On the Contrary , E invoices will reduce the compliance. Reporting of E Invoices will auto fill details in GST ANX 1 and GST ANX 2 and waybill.

Myth : GST E invoices will be issued through GST Portal.

Reality : GST E invoice shall be issued in the same manner currently. IRN for each invoice is required to be generated from billing software . 

Myth : Generation of IRN will take several minutes and would affect my business.

Reality : IRP Portal would assign the IRN in sub 100 milliseconds . More than 1 IRP will be operational.

Read Also : Big Changes In GST Invoices 

Myth : E Invoice cannot be issued without using software and ERP.

Reality : GSTN has already provided 8 free billing software for turnover upto 1.5 Crores . These software can be used for e invoices.

Myth : IRN would be the Invoice Number .

Reality : No , IRN will be a reference number . The invoice number would be same as provided in the invoice in the software.

Myth : Seperate invoice formats for different business.

Reality : Same format will be there for all business. The schema for invoice has fields some of which are mandatory and some are optional .

Myth : Existing billing softwares , erp would required changes for E Invoices.

Reality : No major change would be required at the dealers end . The software providers would require to introduce small changes at the backend.

Read Also : GST NEW RETURN RET 1

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