Applicability of E-Invoicing under GST w.e.f 1st August, 2023

GST Update-2/2023

E-invoice:

Under e-invoicing system, all business-to-business invoices shall be prepared digitally by including such particulars as contained in FORM GST INV-01 after obtaining an invoice reference number by uploading information contained therein on the Common Portal in such manner and subject to conditions and restrictions as may be specified in the notification.

Rules:

Sub-rule (4) of the rule 48 of the Central Goods and Service Tax Rules, 2017, such class of registered persons, as notified by the Central Government on the recommendation of the Council, shall be required to prepare e-invoices in respect of supply of goods or services or both to a registered person [or for exports].

Invoices: 

Applicable to B2B invoices only. All business to business invoices issued by the notified registered persons shall be covered under this rule. 

Persons required to prepare E-invoices: 

E-invoicing is applicable to all registered persons, other than [a SEZ unit] and those referred to in sub-rules (2), (3), (4), and (4A) of Rule 54 of the Central Goods and Service Tax Rules, 2017, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds 5 crore rupees.

Turnover Limit:

E-invoicing is applicable to all notified registered persons having aggregate turnover in any preceding financial year from 2017-18 onwards exceeds 5 Crore rupees as per Notification-10/2023- Central Tax - dated - 10th May, 2023.

Currently, threshold limit is the aggregate turnover exceeds 10 Crore rupees till 31st July, 2023.

Effective Date:

The new turnover limit will be applicable with effect from 1st August, 2023.

Rationalisation of late fee for GSTR-9 and Amnesty to GSTR-9 non-filers:

 Maximum Late fee:

Financial Year 2022-23 onwards:

• Aggregate Turnover up to 5 Crores in the relevant FY = Rs. 25/day of default up to 0.02% of Turnover in the State /UT (under CGST) + Rs. 25/day of default up to 0.02% of Turnover in the State /UT (under SGST/UTGST)

• Aggregate Turnover more than 5 Crores but less than 20 Crores in the relevant FY = Rs. 50/day of default up to 0.02% of Turnover in the State /UT (Under CGST)+ Rs. 50/day of default up to 0.02% of Turnover in the State /UT (Under SGST/UTGST)

For FY 2017-18 to FY 2021-22:

• Not filed GSTR9 on or before 31-03-2023 but filed the same within the period of 01-04-2023 to 30-06-2023, maximum late fee will be Rs. 10,000 (CGST) + Rs. 10,000 (SGST/UTGST).

Mandatory e-filing of FORM 10F:

 

1. Extended the exemption given till 30/09/2023. Previously it is exempted till 31/03/2023.
2. Applicable to Non-resident tax payers:

• who want to claim benefits under DTAA
• who were not having PAN
• not required to have PAN

        under the Income Tax Act, 1961 read with rules thereunder.

   3. These tax payers can file FORM 10F manually.

PAN - Aadhaar Linking

 As per Income-tax Act, 1961, it is mandatory for all PAN holders,
other than exempted category, to link their PAN with Aadhaar before 30.06.2023.

Link your PAN with AADHAAR with a late fee of Rs. 1,000 on or before 30-06-2023; otherwise PAN will be inoperative with effect from 01-07-2023.