GST Update: CBIC notifies revised e-invoice schema and applicability of e-invoicing
The Central Board of Indirect Taxes and Customs (CBIC), vide issue of Notification No. 60/2020 – Central Tax dated July 30, 2020 has notified the updated version of e-invoice schema/format (Version 1.1). The relevant API release along with validations and FAQ are yet to be issued.
Further, vide issue Notification No. 61/2020–Central Tax dated 30th July 2020, the turnover limit for mandatory implementation of e-invoicing has been increased from INR 100 crore to INR 500 crore. However, the date for implementation of e-invoicing continues to be October 1, 2020. Further, exemption from issuance of e-invoice has also been extended to Special Economic Zone Unit (SEZ Unit).
Accordingly, e-invoice is now mandatory w.e.f. October 1, 2020 for all tax payers (other than Insurer, Banking Company, Financial Institution including NBFC, GTA, supplier of passenger transportation service, multiplex screens and SEZ Unit) having turnover exceeding INR 500 crore in a financial year.
E-invoicing is a business reform which requires significant changes to be made to ERP systems including billing systems and other allied business processes. Given that businesses are struggling due to disruption caused by COVID-19 pandemic and there are just 2 months left to implement e-invoicing, it was necessary to provide clarity on the process flow of e-invoicing in order to implement the same effectively. In this regard, NASSCOM made a representation to GST Policy Wing requesting for issuance of revised schema of e-invoiving. Our representation can be accessed from here. Changes notified by CBIC are a step in right direction. Increase in turnover limit to INR 500 crores will provide more time to other taxpayers to understand and adopt e-invoicing mechanism.
We shall keep you posted on further updates.