E - Invoicing

[Kaustubh Karandikar]

XYZ (Proprietory Concern) owning sweet shops and having more than ₹ 100 Crore turnover in a financial year. Most of their supplies are to B To C and very few i.e. 5 to 10 transactions in a month are to B To B. Are they required to start e – invoicing from 01.01.2021 for B To B supplies only or for all the transactions i.e. B To C as well as B to B or since B To B is very negligible, they need not follow e – invoicing system?

[Rajagopalan Ranganathan]

Sir,

As per Notification No.13/2020– Central Tax dated 21st March, 2020 -

"registered person, other than [a Special Economic Zone unit and]1 those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds five hundred crore rupees / [one hundred crore rupees , as a class of registered person who shall prepare invoice and other prescribed documents, in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person or for exports.

The only condition is both supplier and recipient are registered under CGST Act, 2017. In respect of B@C transaction if both the supplier and recipient are registered than e-invoice is applicable.

[Ganeshan Kalyani]

Sir, the taxpayer is required to do e-invoicing for their B2B supply and for B2C it is not required.

In my view, in GST , B2B means supply to a registered taxpayer and B2C means supply to an unregistered taxpayer.

[KASTURI SETHI]

I support the views of both experts. I further clarify that when we talk of 'recipient' as a registered person, it is very much clear like sunshine that the said recipient is registered for the purpose of business. Sh.Ganeshan Kalyani has also cleared this point on the same page

AI Summary

E-invoicing Mandatory for B2B Transactions Only, Not Required for B2C, Clarifies GST Compliance for Proprietorships A proprietorship with over 100 crore turnover, primarily conducting B2C transactions, inquired about the necessity of implementing e-invoicing from January 1, 2021. The responses clarified that e-invoicing is mandatory only for B2B transactions, where both parties are registered under the GST Act. It is not required for B2C transactions, as these involve unregistered recipients. The experts agreed that e-invoicing applies when the recipient is a registered business entity.