E-Invoice is mandatory for entities having turnover of atleast Rs.10 crore

E-Invoice is mandatory for entities having turnover of atleast Rs.10 crore

• Category: Notification
• Date: 02-08-2022

As per recent Notification No.17/2022 dt. 01.08.2022 issued by Central Government, E-Invoice is mandatory for entities having turnover of atleast Rs.10 crore(Notification attached herewith) during any Financial Year from 1.7.17 onwards.  

[Ref: Notification No. 13/2020-C.T., dated 21-3-2020 as amended by Notification No. 61/2020-C.T dated 30.07.2020, Notification No. 70/2020-C.T dated 30.09.2020 and Notification No. 88/2020-C.T dated 10.11.20, Notification No.5/2021-CT and Notification No. 01/2022-C.T and Notification No. 17/2022-C.T] 

E-invoice — Registered person except referred in sub-rules (2), (3), (4) and (4A) of Rule 54, whose aggregate turnover in a financial year exceeds 100 crore to prepare invoice and other prescribed documents under CGST Rule 48(4), w.e.f. 01.04.2021 — Notification No. 70/2019-C.T. superseded

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 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 any preceding financial year from 2017-18 onwards exceeds Ten 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 or for exports.

This notification shall come into force from the 1st October, 2022.

Based on above mentioned Provisions of the Notification, Aggregate turnover needs to be considered as defined as per Section 2(6) of the Central Goods and Service Tax Act, 2017

“aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

As such, the suppliers will have to consider taxable, exempt, NIL rated, all turnovers for the purpose of determining the taxable turnover quantum.

Suppliers have to consider the turnover right from 17-1 till 31.3.22 and if in any of the FY, if the Turnover crossed 10 cr, then w.e.f. 1.10.22, the supplier will have to adopt an e-invoice system.

It should be kept in mind that the Turnover is to be considered per year and not aggregate during all these years 

If in any one or more years since 2017-18 till 31.3.22, the supplier crosses 10 cr turnover, then e invoice becomes mandatory.