E-Invoice Provisions relaxed for the month of October 2020

The recent Press Release of Central Board of Indirect Taxes and Customs dated 30th September 2020 has relaxed E-Invoice Provisions for the month of October 2020

The Government had in December 2019 recommended that the GST Taxpayers having total yearly turnover more than Rs. 100 crores in any former Financial Year will be needed to give E-receipt for all the Business to Business (B2B) supplies, in the way recommended under rule 48(4) of the CGST Rules, 2017 w.e.f. 1st' April 2020.

Further, it was additionally mandated under rule 48 (5) of the CGST Rules, 2017 that a B2B invoice or an expert invoice gave by such a taxpayer, in some other way, will not be treated as an invoice. In March 2020, the date of usage of e-receipt was reached out to 1″ October 2020. Keeping in see the difficulties faced by the taxpayers because of COVID-19 lockdown, in July 2020, it was additionally recommended that the taxpayers having total turnover of Rs. 500 Cr. or more just would be needed to give e-receipt w.e.f. 1st' October 2020.

It has been accounted for that even after over 9 months of the primary notice in such manner, a portion of these citizens having total turnover of Rs. 500 Cr. or more are as yet not prepared.

As needs be, as a last possibility, in the underlying period of usage of c-receipt, it has been concluded that the solicitations gave by such taxpayers during October 2020 without keeping the way endorsed under standard 48(4), will be considered to be legitimate and the punishment leviable under section 122 of the CGST Act, 2017, for such non-adherence to arrangements, will stand deferred if the Invoice Reference Number (IRN) for such solicitations is acquired from the Invoice Reference Portal (IRP) inside 30 days of date of invoice.

The equivalent is delineated with a model: in the event that an enrolled individual has issued an invoice dated 31st October. 2020 without getting IRN however reports the subtleties of such receipt to IRP and acquires the IRN of the receipt at the latest 2nd November, 2021 then it will be esteemed that the provisions of rule 48 (5) of the CGST Rules, 2017 are complied with and the punishment imposed under section 122 of the CGST Act, 2017 will likewise stand deferred. Significant notifications would follow.

It may be noted that no such relaxation would be available for the invoices issued from 1″ November 2020 and such invoices issued in violation of rule 48(4) of the CGST Rules 2017 would not be valid and all the applicable provisions of CGST Act and Rules would apply for the said violation.

Notification No. 70/2020: Amendment has been made in earlier Notification No. 13/2020 dated 21st Mar’20 issued w.r.t E-Invoice in relation to followings to turnover

FY for which aggregate turnover is to be checked. Now, it is ‘any preceding FY from FY 2017-18 onwards’ instead of ‘a financial year’ meaning thereby that if the T.O of any taxpayer was more than Rs. 500 Crs in any preceding FY from FY 2017-18 onwards then E-Invoice will be applicable.

Further, earlier the mandate to prepare E-invoice was for B2B transactions though by way of FAQ’s it was clarified that export invoices are also covered. Now, the same have been regularised by way of this notification adding the words ‘or for exports’ also after the words ‘ goods or services or both to a registered person.

Notification no 71/2020: Requirement of dynamic QR code for B2C invoices deferred till 1st of December 2020

Under rule 46 which prescribed mandatory particulars to be mentioned on the invoice, QR code having enabled IRN in case of B2B invoices shall be part of mandatory particulars of this rule.

iIn rule 48(4) which prescribe manner for issuing e invoice, power has been given to commissioner to exempt any registered person for issuing of e invoice for a specified period by way of notification.

In Rule 138A_ In case of e invoice transporter can produce IRN and QR code electronically for verification by Proper officer instead of physical copy of tax invoice.