Table of Contents
What is E-invoicing?
Electronic invoicing / e-invoicing is a form of electronic billing!
Why E-invoicing?
- E-invoicing is increasingly mandated by Governments across the world, particularly due to GST/VAT evasion
- Real-time invoice reporting discourages subsequent fraudulent changes/ adjustment
- Real-time reading of invoice/ data by Government
- Machines can read e-invoices
Invoice – ‘Pulse’ of business!
Inward supply (GSTR-2A) → Business Entity → Outward supply (GSTR-1)
E-invoicing – Globally!
South Korea
• Introduced in 2011 and mandated for most of the taxpayers from 2014
• Transition Phase – 3 years
Germany
• Framework shared in 2017
• At present, evolving
European Union
• EU is also recommending e-invoicing (EU Directive 2014/55/EU and EN 1693 standard)
In 2019, 55 billion (approx.) invoices were exchanged on a paperless basis (Billentis-Compacer Study)
Globally, a number of invoices is likely to encompass 550 billion p.a.
E-invoicing – For whom?
E-invoicing – What to do?
As a supplier
Is it applicable?
• If yes, comply!
• If no, keep track of future phases!
As a recipient
Is it applicable to vendors?
• If yes, make them comply!
• If no, keep track of future phases!
E-invoicing – Evolution in India!
E-invoicing – Evolution
E-invoicing – Status update!
Phase I (Implemented – 1.10.2020)
• Aggregate turnover above INR 500 crore!
Phase II (From – 1.01.2021)
• Aggregate turnover between INR 100 crore to 500 crores (Vide Not. No. 88/2020-CT)
Phase III ( Likely From – 1.04.2021)
• Aggregate turnover above INR 5 crore (hopefully not for below 5 crore taxpayers!)
Invoicing in India
Relevant Provisions!
Act
• Section 2 (66)
• Section 31
• Section 16
• Interest, penal provisions, etc
Rules
• Rule 46
• Rule 46A (TI-cumBoS)
• Rule 48 (Manner)
• Rule 49 (BoS)
• Rule 54 (Special cases)
• Rule 138A (E-way bill)
Notifications
• 2019 •Not. No. 31
• Not. No. 68 to 72 • 2020
• Not. No. 2/2020
• Not. No. 13 and 14
• Not. No. 60 and 61
• Not. No. 70 to 73
• Not. No. 88
Invoice in GST – Supplier
Meaning
• Section 2 (66)
• “Invoice” or “tax invoice” means the tax invoice referred to in section 31 [Sec. 2 (66)]
• Tax invoice includes a revised invoice [Sec. 31]
Supplier
• Section 31 – Tax invoice
• A registered person supplying taxable goods/ taxable services shall.. issue tax invoice
• Provided… by notification… specify… invoice shall be issued, within such time and in such manner as may be prescribed
Rules
• 46. Tax invoice – Subject to rule 54, a tax invoice referred to in section 31 shall be issued by the registered person containing the following particulars, namely…
• 54. Tax invoice in special cases
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