E-Invoicing 3rd Phase: INR 50 Crores Turnover Taxpayers Covered

As per the recent notification issued by the CBIC, 3rd phase of e-invoicing will now cover all those taxpayers whose aggregate turnover exceeds INR 50 Crores during any previous financial year 2017-18, 2018-19, and 2019-20. 

E-Invoicing Phases 

Government of India implemented e-invoicing in three different phases. 

1st Phase of e-invoicing covered all the taxpayers whose aggregate turnover exceeded INR 500 Crores during any previous FY. They needed to comply with the e-invoicing provision from 1st October 2020. 

2nd Phase of e-invoicing covered all the taxpayers whose aggregate turnover exceeded INR 100 Crores during any previous FY. They needed to comply with the e-invoicing provision from 1st January 2021. 

3rd Phase of e-invoicing covered all the taxpayers whose aggregate turnover exceeded INR 50 Crores during any previous FY. They needed to comply with the e-invoicing provision from 1st April 2021.

Note: As per the latest notification issued by the CBIC, e-invoicing will be implemented to all those taxpayers whose aggregate turnover during any previous FY exceeds INR 20+ Crores from 1st April 2022. Read more about its impact on small businesses here.

Criteria of E-Invoicing Implementation 

Here are the criteria of e-invoicing implementation: 

1. Turnover must exceed the threshold limit of INR 50 crores in any financial year 2017-18, 2018-19, and 2019-20. 
2. Deals in B2B and Export Supplies (including deemed export supplies) 

Date of Phase 3 E-Invoicing Implementation 

All those taxpayers who are covered in this mandate need to comply with the e-invoicing provision from 1st April 2021. 

Penalty for Non-Generation of E-Invoices 

Under the new e-invoicing system, e-invoice non-generation will be treated as a non-issuance of e-invoice. Hence, the non-generation of e-invoices will attract penalties. Here is the list of penalties applicable for non-generation of e-invoices: 

S.No.	Scenarios	Penalty
1.	Non-issuance of the invoice or Non-generation of invoice Failure to generate IRN  Failure to upload invoices on IRP	100% of the invoice value or INR10,000 (Whichever is higher)
2.	Incorrect Invoicing	INR 25,000

Consequences for Non-Generation of E-Invoices 

There will be several consequences for not complying with 3rd phase of e-invoicing, apart from the above penalties. 

1. Filing of GST Return and e-way bill generation will be hampered as the data of e-invoices get auto-populated in GSTR and Part-A of e-way bill 
2. Vehicle may get detained or confiscated by the tax officers without a proper e-invoice 
3. The recipient will not make the payment without a valid e-invoice as his/her eligibility to claim ITC will get hampered 

Benefits of E-Invoicing 

The taxpayer can enjoy the below benefits under e-invoicing: 

1. The e-invoice data generated gets auto-populates in GST returns and e-way bills 
2. The supplier can track the status of an e-invoice on a real-time basis 
3. The tax authorities will be able to track the fake e-invoice as they can easily authenticate it using the signed QR code and IRN 
4. The taxpayer can generate “n” number of e-invoice copies 

How Can GSTrobo® Help You? 

GSTrobo® a division of Binary Semantics Ltd is one of the leading ASP- GSP who provides industry-leading GST compliance software such as GST, e-way bill, and e-invoicing software. These solutions not only automate most of your GST compliance but also helps you to generate error-free e-invoices.