Applicability of E-invoces for Nil rated and Taxable goods

[kannaiyan gajendra]

We are dealing both nil rated and taxable goods. Can we raise e-invoice or not?

Existing practice, we are raising E-invoice for both nil rated or taxable goods as turnover is crossed more than 25 crores in last financial year.

Kindly Advice

[KASTURI SETHI]

You are required to raise e-invoice because you dealing with nil rated supply and taxable supply.

[kannaiyan gajendra]

Thank you sir

[Shilpi Jain]

For exempt supply u would issue bill of supply. No e invocie is required for the bill to of supply

[KASTURI SETHI]

For more details peruse an article titled, "E-INVOICE UNDER GST " written by: Sh. M. GOVINDARAJAN, Sir on 10.3.22 in Article Section.

NIL rate of tax is also one of the slabs of GST. Issuance of tax invoice for nil rated supply is legally correct.

[Shilpi Jain]

Articles contain the views of the writer and need not be the correct position always. In that matter there are articles on cleartax which state that bill of supply is not invoice and no e-invoice required.

So my view is still that e-invoice is required for invoice, debit notes and credit notes and not for BoS. So not required to be issued for an exempt supply.

Pls look at faq in para 11 at the link

https://www.gstn.org.in/assets/mainDashboard/Pdf/GST%20e-invoice%20System%20-%20FAQs.pdf

[Ganeshan Kalyani]

I agree with the view of Sri Kasturi Sir. If invoice raised having Nil rated and taxable supply then e-invoice is required to be generated for that invoice.

[Amit Agrawal]

W.r.t. quoted article, I think that even the learned author holds similar views that of Ms. Shilpi Jain Ji, wherein author has said in his article as follows: - " ............ No E-Invoice is required to be generated for the exempted supply of goods or services or both and also for NIL rated supply. If there is supply of both taxable and exempted/NIL rated goods then E-Invoice shall be required to be issued. Invoices, credit notes and debit notes are covered under E-Invoice scheme".

All last of above quoted statements of the author was due to Rule 46A of the CGST Rules, 2017, as I believe.

Even otherwise and with due respect for all the views, I agree with the views of Ms. Shilpi Jain Ji - on the query raised - in her above post No. 5.

Above are my personal views and same should be construed as professional advice / suggestions.

[KASTURI SETHI]

NIL rated supply is not exempted supply. It has no clash with Bill of Supply. In my view, Bill of supply is not in picture here. The query is about NIL rated supply and taxable supply.

[Shilpi Jain]

There is no specific NIL rated supply defined under GST. Exempted and NIL rated seem to be interchangeably used by all.

[Shilpi Jain]

Also many a times we see that the GST forms use words loosely and not strictly as per the definitions under GST.

This creates some problems.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir.

IRP is not restricting to generate IRN only for taxable goods. If for a safer side a person want to generate IRN then he can do so.

AI Summary

E-invoice requirement: invoices containing both taxable and nil-rated supplies require e-invoicing when the e-invoice regime applies.
E-invoice generation is required for invoices that include both taxable and nil-rated supplies under the e-invoicing regime; nil-rated supplies are treated as a rate slab permitting tax invoices, whereas exempt supplies use a bill of supply which is not subject to e-invoice. The discussion endorses issuing an IRN for mixed invoices and notes inconsistent terminology in guidance and practice.