For E-Invoicing, will Turnover before 01 July 2017 considered in Aggregate turnover of GST for FY 2017-18

[Rinku Rawat]

Respected Seniors

Our Total Turnover for FY 2017-18 is ₹ 56 Crore, which splits like For Apr-June ₹ 8 Crore and for July Mar ₹ 48 Crore. Now my confusion is, will E-Invoicing applicable to us considering our Total Turnover for 2017-18? or will it not applicable as we only need to consider turnover related to GST period that is ₹ 48 Crore.

Hope i am clear with my query, if not please let me know.

regards

Rinku Rawat

[Rajagopalan Ranganathan]

Sir,

With effect from 01.04.2021 Suppliers whose turnover exceeds 50 crores in any of the financial years from 2017-18 onwards are liable to issued e-invoice. Therefore though tour turnover did not exceed 50 crores during July 2017 to March 2018 if your turnover exceeds in any of the financial years following 2017-18 you are liable to issued e-invoice. Please give details of turnover for the years 1018-19 to 2020-21 while raising such query. I have presumed your turnover exceeds 50 crores during financial years 2018-19 to 2020-21.

[Rinku Rawat]

No Sir

Turnover for FY 2018-19, 2019-20, 2020-21 did not crossed 50 Crore Mark in any year.

[Rajagopalan Ranganathan]

Sir,

In that case you need not issue e-invoice from 1.4.2021.

[Rinku Rawat]

Dear Sir Rajagopalan Ranganathan

Thanks for your response, it is really helpful for my understanding.

Requesting other Seniors too, to provide their valuable views.

Thanks in advance

[Mr Rao]

Dear querist,

Issuance of E-invoice is mandatory w.e.f 1.4.21 for all registered persons whose aggregate turnover crossed ₹ 50 crores in any preceding financial year from 2017-18 onwards in terms of Notification No.05/2021 CT Dt.8.3.21 as rightly explained by Shri Rajagopal sir and it needs no elaboration.

[KASTURI SETHI]

Dear Querist, No relaxation for the period from April, 17 to June, 17. E-invoicing is applicable to you from 1.4.21. Do not be the victim of the language. Emphasis is supplied on, "Any preceding financial year from 17-18 onwards". Any preceding financial year. No break up for the period prior to 1.7.17 for f.y.17-18. Full financial year will be accounted for.

[ABHISHEK TRIPATHI]

Dear Querist,

Your situation is dicey though.

The entire debate revolves around the interpretation of Aggregate Turnover (AT) used in the below principal notification.

If you say AT should be interpreted in light of GST Act, then you don’t need to issue an e-invoice. {Personally, more inclined towards this interpretation}

If you say AT should be interpreted in light of general dictionary meaning, then you need to issue an e-invoice.

Principal Notification as amended time to time as follows:

In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017(hereinafter referred as said rules), the Government on the recommendations of the Council, and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 70/2019 – Central Tax, dated the 13th December, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 926 (E), dated the 13th December, 2019, except as respects things done or omitted to be done before such supersession, hereby notifies registered person, other than 1[a Special Economic Zone unit and] those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in 3[any preceding financial year from 2017-18 onwards] exceeds 6[fifty 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 4[or for exports].

[KASTURI SETHI]

SH. ABHISHEK TRIPATHI JI,

Sir, I was expecting 'CONCLUSION' from you on this issue. Literal meaning of any phrase cannot be brushed aside. When we talk of the phrase, 'any preceding financial year' full financial year (preceding) will come into picture irrespective of the period pertaining to April, 17 to June,17.

[KASTURI SETHI]

Dear Sir,

It is my observation and experience on this forum that a querist expects original views on any complicated issue nonetheless whether that view is pro-assessee or pro-revenue.

[ABHISHEK TRIPATHI]

Sir,

It is "...... aggregate turnover in 3[any preceding financial year from 2017-18 onwards] exceeds 6[fifty crore rupees]......"

So the notification states that if your AT in 2017-18, 2018-19, 2019-20 exceeds INR 50 Cr., then you are the class of RP who has to issue e-invoice.

Indeed it is a full financial year I am considering. For the querist it is Apr 2017 - March 2018. GST Started in July. If we take AT in light of GST Act, then we will say that, there was no taxable supply, exempt supply (ingredients of AT) during Apr - June.

Hence,

AT in light of GST - Apr to June = INR 0 and July - Mar '18 - INR 48 Cr. Now it is below 50 Cr.

[Querist turnover of INR 8 Cr. for Apr-June, on strict interpretation will not for part of Aggregate Turnover as defined under GST. Yes, the turnover is over INR 50 Cr., however Aggregate Turnover is INR 48 Cr.]

This is what I argue, if I have to argue.

[ABHISHEK TRIPATHI]

KS Sir,

Haha !! No Sir, Its pro-Law :P. Everything boils down to how we interpret aggregate turnover. Your observation and experience is always paramount.

[KASTURI SETHI]

Dear Sir,

Agreed Sir. Exactly 'caught' me on footing of 'pro-law' . This is also called 'zero in on' approach.

AI Summary

Aggregate turnover threshold determines e invoicing obligation; whether pre GST months in 2017-18 count remains contested. E-invoicing is required for registered persons whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds the prescribed threshold; the operative question is whether the 2017-18 year must be counted in full for that test or measured under the GST definition of aggregate turnover, which may exclude pre-GST months and thus yield a lower amount for that year.