Dear All,
This is to update you that Goods and Services Tax Network (‘GSTN’) has recently issued updated Frequently Asked Questions dated 14 September 2020 (‘FAQs’) clarifying important aspects in relation to the E-invoice system under the GST regime. We have hereinbelow summarized some of the key aspects clarified for your reference:
E-invoice -Basics |
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E-invoice -Applicability |
o Invoiceo Credit Note; ando Debit Note
o Supplies to registered persons (B2B)o Supplies to SEZs/ Exports made (with/without payment)o Deemed Exports made
o SEZ Unitso Insurer or a banking company or a financial institution, including a non-banking financial companyo Goods Transport Agency supplying services in relation to transportation of goods by road in a goods carriageo Suppliers of passenger transportation serviceo Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens
In this scenario, as SEZ unit is exempt from e-invoicing, whether e-invoicing will be applicable to DTA Unit?o Although SEZ unit is exempt from E-invoice, the same would be applicable on DTA unit because AT of the legal entity in this case is more than INR Rs. 500 crores
o A list has been prepared (though not a final one), in case a taxpayer has or had prescribed AT in any FY since introduction of GST, is mandated to report E-invoice to IRP. Further, one can search the status of enablement of a GSTN on E-invoice portal by following below path:https://einvoice1.gst.gov.in > Search > e-invoice status of taxpayero Further, in case any registered person, who doesn’t have the requirement to prepare E-invoice but still enabled on the E-invoice portal, the same may also be brought to the notice at support.einv.api@gov.in so that necessary action can be taken |
E-invoice -Reporting to IRP |
o No such validation is kept presently
Further, Web based/ mobile app-based modes will also be provided in future
o A localised mechanism to provide relaxation in such contingent situations will be notified |
E-invoice -Schema / Contents |
o Elements of invoice which are internal to business, such as company logo etc. are not part of e-invoice schema. However, insertion such as company logo, additional text etc., can be made by respective ERP/billing/accounting software providers
o Such other charges (taxable), e.g. freight, insurance, packing & forwarding charges, amortization charges etc. may be added as one more line item in the invoice
o For items outside GST levy, separate invoice may be given by such businesses
o No, linkage with invoice is built, in view of the amended provisions of GST |
E-invoice -Printing of invoice/ IRN/ Quick Response (‘QR’) code | Where e-invoicing is applicable, there is no need of issuing invoice copies in triplicate/duplicate. This is clearly specified in Rule 48(6) of the CGST Rules |
E-invoice -Verification of IRN/ QR code |
o One can verify the authenticity or correctness of e-invoice by uploading the signed JSON file or Signed QR Code (string) into e-invoice system: https://einvoice1.gst.gov.in > Search > ‘Verify Signed Invoice’o Alternatively, with “Verify QR Code” mobile app which may be downloaded from einvoice1.gst.gov.in > Help > Tools > Verify QR Code App
o a Dynamic Quick Response code made available to buyer through digital display (with payment cross-reference) shall be deemed to have QR code. The purpose of this Notification is to enable and encourage digital payments where buyer can scan the dynamic QR code and make payment from mobile wallet directly. The dynamic QR code, on the other hand, will have the payment details and thus ‘scan and pay’ in one go is possibleo Further, this has no relevance or applicability to the e-invoicing in respect to B2B Supplies by notified class of taxpayers |
E-invoice -Sending to Receiver |
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E-invoice – Amendment / Cancellation |
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E-way bill related clarifications |
o Yes, on successful reporting of invoice details to IRP, the invoice data (payload) including IRN, will be saved in GST System and will auto-populate them into GSTR-1 of the supplier and GSTR-2A of respective receivers
o In case both Part-A and Part-B of e-way bill are provided in the e-invoice schema, the details will be used to generate e-way billo In case Part-B details are not provided at the time of reporting invoice to IRP, the same will have to be provided by the user through ‘e-way bill’ tab in IRP log in or e-Way Bill Portal, so as to generate e-way bill |