GST E Invoices rules notified by CBIC

In a big bang change in GST invoicing method Central Board of Indirect Taxes has notified the rules for issuing GST E invoices. To tackle the menace of fake invoices in GST and input tax credit GST e invoices rules notified by CBIC. GST Invoice Format was already published by GSTN for suggestions.

The electronic generation of invoices will be optional from January 2020 and will be made mandatory from April 2020.To implement this change GST E invoices rules notified by Central Board of Indirect Taxes, CBIC.

Provisions relating to Invoices in GST.

Every registered person making any taxable supply of goods or services or both shall issue a Tax Invoice within the time prescribed under the law. The invoice has to be generated as per the prescribed format and containing particular as given in Rule 46 of CGST Rules.The new GST Invoice Format has already been published by GSTN.

Need for GST E invoices

Since, Input Tax Credit in GST plays a very important role, and many firms are claiming input tax credit on the basis of fake invoices. CBIC in order to tackle this issue has announced electronic generation of invoices.

Now, after a long discussion and releasing the formats and sample of invoices by GST, government has come out with the relevant notifications clearing the cloud on this matter.

Notification No 68/2019 dated 13-12-2019

This notification seeks to make necessary changes in CGST rules relating to invoices in GST. It specifies the class of registered persons to issue GST invoices in Form GST INV 01. This shall include the particulars as may be prescribed. The GST INV 01 shall be made through the Common portal as specified.

Any person who is liable to issue invoices electronically shall not issue any invoices in other modes. Any such invoices issued will be treated as invalid invoice.

Notification 69/2019 dated 13-12-2019

In this notification government has specified the common portal on which GST e invoices shall be made. Persons who are required to make electronic invoice shall use any of these portals :

www.einvoice1.gst.go.vin till www.einvoices10.gst.gov.in. All these portals will work for issuing of invoices to handle the load and make the process easy and smooth.

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Notification No 70/2019 dated 13-12-2019

As per this notification, every registered person whose aggregate turnover exceeds Rs 100 Crores shall issue invoices as per the process specified in Notification 68/2019 and Notification 69/2019 dated 14-12-2019.The electronic invoices shall be issued for every supply of goods or services or both to a registered person . In simple words , GST E invoices shall be issued for B2B invoices and not for B2C invoices

Notification No 71/2019 dated 13-12-2019

Along with the electronic invoices in GST , Notification No 71/2019 also specifies that mentioning of Quick Response Code will be mandatory from April 2020 on Tax Invoices .

Notification No 72/2019 dated 13-12-2019

Notification No 72/2019 specifies the registered person having aggregate turnover more than Rs 500 Crores as a class of registered person who shall mention the Quick Response Code or QR code for invoices to unregistered person. The QR code shall be provided for all B2C transactions. If such registered person makes a Dynamic Quick Response (QR) code available to the recipient through a digital display, such B2C invoice issued by such registered person containing cross-reference of the payment using a Dynamic Quick Response (QR) code, shall be deemed to be having Quick Response (QR) code

Aggregate turnover shall have the same meaning as specified in Clause 6 of Section 2 of GST Act.