E-INVOICING

[S.C. WADHWA]

Dear Experts,

Please confirm whether E-invoicing is meant for Taxable goods and services or also including exempt supply of goods and services.

REGARDS,

WADHWA

[Rajagopalan Ranganathan]

Sir,

A registered person, other than an SEZ unit*, Insurance Company, banking company, financial institution including non-banking financial institution, GTA, supplier of passenger transportation service, supplier of services by way of admission to exhibition of cinematograph films in multiplex screens, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds INR 500 crores [100 crores w.e.f. 01.01.2021] would be required to prepare invoice and other documents prescribed under sub-rule (4) of rule 48 in respect of the supply of goods or services or both to a registered person or for Exports.

If a person is registered under CGST Act, 2017 he is a taxable person. Supplier of unconditionally exempted goods/services need not get himself registered under GST Act. Hence a supplier of unconditionally exempted goods/services is not required to follow the procedure of preparing e-invoice.

[Ganeshan Kalyani]

E-Invoice is applicable on taxable goods and services only. It is not required for Bill of Supply i.e. for exempted supply.

AI Summary

E-Invoicing Under GST: Mandatory for Taxable Supplies Over INR 100 Crores, Not Required for Exempt Goods/Services. A query was raised regarding whether e-invoicing under the Goods and Services Tax (GST) applies to both taxable and exempt supplies of goods and services. Responses clarified that e-invoicing is mandatory for registered persons with a turnover exceeding INR 100 crores, excluding certain entities like SEZ units and financial institutions. It applies only to taxable goods and services, not to exempt supplies. Suppliers of unconditionally exempt goods or services are not required to issue e-invoices, as they are not considered taxable persons under the GST Act.