E-way payments with out e-invoice particulars for B2B, B2E transactions to be blocked from March 1

Chosen GST payers won’t be able to generate e-way payments with out particulars of e-invoice with impact from March 1, 2024, the Nationwide Informatic Centre (NIC) has mentioned. “That is relevant for e-invoice-enabled tax payers and for the transactions associated to provides below B2B (Enterprise to Enterprise) and exports. Nonetheless, EWBs for different transactions equivalent to B2C (Enterprise and non-supplies) will perform as common with none change,” NIC mentioned in a round. As on date, companies with an annual turnover of ₹5 crore or extra are mandatorily required to generate e-invoices, which implies 10 lakhs assesses are required to adjust to this. This quantity doesn’t embody exempted classes equivalent to banks, non-banking monetary firms, or insurance coverage firms.

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An e-way invoice is an digital doc generated on a portal, evidencing the motion of products and indicating whether or not tax has been paid. As per Rule 138 of the CGST Guidelines, 2017, each registered one that causes the motion of products (which can not essentially be on account of provide) of consignment worth of greater than ₹50,000 is required to generate an e-way invoice. This requirement applies to actions between two States and inside a State. Nonetheless, a State or UT with a legislature can resolve the brink for the worth of products relevant for motion inside its boundary. E-invoice has been operationalised since October 2020 for the taxpayers with Annual Combination Turnover (AATO) above ₹500 crore. In a phased method, e-invoice era has develop into obligatory for taxpayers with AATO above 5 crore. From day one, e-invoice has been seamlessly built-in with the e-way invoice system, guaranteeing that e-way payments are generated together with e-invoices. That’s, throughout e-invoice era, if the transportation particulars are offered, the e-waybill is mechanically generated. Nearly all of taxpayers are producing e-invoices together with e-way payments. Nonetheless, in line with NIC, upon evaluation it has been discovered that some taxpayers, who’re eligible for e-invoicing are producing e-way payments with out linking them with e-invoices for B2B and B2E transactions. In a few of these instances, the bill particulars entered individually below the e-way invoice and e-invoice don’t match with respect to sure parameters. That is resulting in a mismatch within the e-way invoice and e-invoice statements. That’s the reason NIC has come out with a brand new round. As per Rule 48(4) of CGST Guidelines, notified class of registered individuals have to organize an bill by importing specified particulars of the bill (in FORM GST INV-01) on Bill Registration Portal (IRP) and acquire an Bill Reference Quantity (IRN). After following the above ‘e-invoicing’ course of, the bill copy, which incorporates the IRN (with QR Code), issued by the notified provider to the customer, is usually known as ‘e-invoice’ in GST.

NIC additional mentioned that the e-way invoice era course of shall be included with acceptable checks for taxpayers (suppliers) eligible for e-invoicing. “All taxpayers and transporters are requested to make obligatory modifications of their techniques in order that they’ll adapt to the modifications from March 1, 2024,” NIC suggested.