E invoice is a tax invoice which contains QR code.
The tax invoice generated through accounting software i.e. Tally, Busy etc. are transmitted on the IRP i.e. on Invoice Registration Portal or e-invoicing portal in json file. The government portal validates the information and return back the json file with digital signature after generating IRN (unique invoice reference number for each invoice) and adding a QR Code. The said json file is imported in the Accounting/ ERP system that enables invoice to be printed with QR Code.
The government started the E invoice mandate with the turnover of Rupees 500 Crores, with time the government has lowered the aggregate annual turnover amount so as to extend the coverage of registered persons under E invoice mandate. The government is trying to curb the fake invoicing by this move.
Below are the notifications which have been issued time and again to lower the annual aggregate turnover.
| S.no. | Notification no. and date of notification | Effective date of notification | Aggregate annual turnover |
| 1 | 61/2020-Central Tax, dt. 30.7.2020 | 1.10.2020 | 500 crores |
| 2 | 88/2020-Central Tax, dt. 10.11.2020 | 1.01.2021 | 100 crores |
| 3 | 05/2021-Central Tax, dt. 08.03.2021 | 1.04.2021 | 50 crores |
| 4 | 01/2022-Central Tax, dt. 24.02.2022 | 01.04.2022 | 20 Crores |
| 5 | 17/2022-Central Tax, dt. 1.8.2022 | 01.08.2022 | 10 Crores |
The notification no. 17/2022 – Central Tax, dated 1.8.2022, has laid down that the registered person whose annual turnover in the previous financial year from 17-18 onwards exceeds Ten crores rupees then such registered person is required to issue invoice containing particulars mentioned in GST INV-01 after obtaining IRN (Invoice Reference No.). This notification shall be applicable from 1st day of August 2022. If the person does not issue E invoice when he is required to issue it, then penalty for not issuing valid tax invoice u/s 122 may get invoked.
Who have to comply with the E invoicing
- Person having aggregate annual turnover more than Rupees 10 crores in any of the financial year from 17-18
- For the supply of good or services or both
- For b2b transactions
- Supplies to SEZ units
- Exports (with or without payment) (Notification no. 70/2020-Central Tax, dated 30.09.2020)
If the person whose aggregate annual turnover (Taxable turnover + exempted turnover) exceed Rupees 10 crores in any of the financial year from 2017-2018 i.e. even if his turnover is below Rupees 10 crores in the financial year 20-21, 21-22 but he had the turnover more than Rs. 10 crores in the year 19-20 then in that case also the registered person gets covered under this notification.
There are certain Registered persons who are not required to fulfill the conditions laid down in 48(4)
- Government department, local authority
- Special economic zone unit
- Insurer, banking company, financial institution, non banking financial company mentioned in Rule 54(2) of CGST Rules 2017
- supplier of taxable service is a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage Rule 54(3) of CGST Rules 2017
- supplier of taxable service is supplying passenger transportation service Rule 54(4) of CGST Rules 2017
- person supplying services by way of admission to exhibition of cinematograph films in multiplex screens Rule 54(4A) of CGST Rules 2017
Certain supplies which will not be covered under E invoicing
B2c transactions
Non-GST Supplies (alcoholic liquor, Petrol, Diesel)
Bill of Entry for imports
Nil rated or exempted supplies
Certain documents which are not required to be in e invoice
Debit/credit notes
Delivery challan
Bill of supply
RCM under section 9(4)
