Grace period on generation E-Invoices

[gvenugopal g]

Dear Experts,

Good Evening!

If the company's turnover is exceeding ₹ 500 Crore Rupees can generate E-Invoices on the next day or later after issuing regular tax Invoices to customers.

Kindly let us know how many days grace period now granted for issuing E-Invoice after 1st November 2020.

Thanks & Reagrds: G VENUGOPAL

[Shilpi Jain]

There is no specific period mentioned in the law within which the e invoice has to be generated. however where any person is required to issue e invoice, if any other document is issued then it will not be considered as a valid document. In this backdrop it is suggested that the goods be transported with an e invoice.

In case of services some relaxation can be taken

[Ganeshan Kalyani]

The relaxation was given for the time period between 01.10.2020 to 31.10.2020 in the manner that the tax invoice raised in this period should be sent to Invoice Registration Portal (IRP) i.e. e-invoice to be prepared within 30 days from the date of invoice. However, such relaxation is not extended from 01.11.2020. Thus, every tax invoice raised on B2B supplies must have IRN and particularly QR code printed on it. In absence of the same the invoice will be considered as invalid.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

I am also of the same view.

[Bhavika Chothani]

After 1st November there are no grace days provided by NIC. The rule is that IRN is required before generation of E-Way Bill or before you provide the invoice copy to your customer whichever is earlier.

AI Summary

Companies with over 500 Crore turnover must generate E-Invoices with IRN and QR code promptly; no grace period now. A company exceeding a turnover of 500 Crore must generate E-Invoices promptly after issuing regular tax invoices. Initially, a grace period was allowed between October 1 and October 31, 2020, permitting E-Invoices to be prepared within 30 days of the tax invoice date. However, this grace period was not extended beyond November 1, 2020. Now, every B2B tax invoice must have an Invoice Reference Number (IRN) and a QR code to be valid. The IRN should be generated before issuing the invoice to the customer or before generating an E-Way Bill, whichever occurs first.