Latest E-Invoice Update
Introduction : Government has specified certain class of taxpayers which are required to generate e-invoice but recently there is change in applicability of provision of e-invoicing. Along with it there are also some important amendment which are worth noting. In this article we will discuss what are the changes in provision relating to e-invoicing.
Changes in provision : Firstly, e-invoice was mandatory from 1st October, 2020; for any business entity who’s turnover in financial year is greater than or equal to Rs. 100 Crore and invoice which is not complying the requirement will be treated as null or void; and this provision was equally applicable to tax invoice, debit note, credit note, and RCM invoice. It shall be noted it was not appliable to invoice generated in form pro-forma.
Now criteria of applicability have been revised; It is now applicable to business entity whose turnover in any financial year starting from financial year 2017-18 exceeds 500 Crore in a financial year. The provision is equally applicable to “exports” undertaken by entity during the year.
Along with power has been given to commissioner that in case of any contingency it can exempt a person or class of registered person for a specified period.
Now, as on 01-10-2020 government through updates clarified as due to COVID-19 lockdown a genuine hardship is faced by taxpayers, and due to which government has decided that if from 1st October, 2020 invoices are not issued as per the requirement prescribed under e-invoice procedure, however Invoice Reference Number is required to be obtained with in 30 days from date of such invoices; i.e. even if assessee is currently not uploading invoice details on e-invoice portal for obtaining Invoice Reference Number and issuing invoice with QR code but if the same has been obtained withing 30 days from date of issuance of invoice, it will be deemed to be a valid invoice.