Introduction of E-Invoicing System – CGST (Eighth Amendment) Rules, 2019

Notification No.: 68/2019 – Central Tax
Date of Notification: 13th December 2019
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 164 – Power to make rules
• CGST Rules, 2017:
  • Rule 48 – Manner of issuing invoice
    • Insertion of sub-rules (4), (5), and (6)
• Integrated GST Act: Not applicable

Summary of Notification

Introduction of E-Invoicing Framework via Rule 48(4), (5), and (6):
The Central Government, through this Eighth Amendment to CGST Rules, 2019, introduced a legal framework for electronic invoicing (e-invoicing) under Rule 48:

1. Sub-rule (4):
   Certain classes of registered persons (to be notified separately) must prepare invoices using FORM GST INV-01 by uploading the required details on the GST common portal to obtain an Invoice Reference Number (IRN). This e-invoicing requirement will be subject to specific conditions, restrictions, and methods as notified by the Government.
2. Sub-rule (5):
   For notified persons, any invoice not generated through the specified e-invoicing system will not be treated as a valid invoice under GST law.
3. Sub-rule (6):
   The provisions under sub-rules (1) and (2) of Rule 48 (relating to manual invoice requirements) will not apply to persons generating invoices under the e-invoicing framework in sub-rule (4).

This amendment paves the way for mandatory e-invoicing for specified classes of taxpayers, aiming to standardize and digitize invoice reporting, reduce tax evasion, and enhance transparency in the GST ecosystem.

Source: Notification No.: 68/2019 – Central Tax