E-INVOICING, QR CODE AND EXPORT FREIGHT EXEMPTION

Following updates may be noted:

E-invoicing

As you are aware, E-invoicing has been made mandatory from today (i.e. 01.10.2020) for the suppliers whose annual aggregate turnover exceeds Rs. 500 crores in the financial year. Vide Notification No. 70/2020 – Central Tax dt. 30.09.2020 the said criteria of Rs 500 crore shall be required to be seen qua any of the years starting from FY 2017-18. Therefore even if the aggregate turnover during FY 2019-20 is less than Rs. 500 crore, E-invoicing shall be mandatory from today if the aggregate turnover during FY 2017-18 or FY 2018-19 exceeded Rs. 500 crore. Also, E-invoicing shall be mandatory even for exports apart from the domestic B2B transactions.

It may also be noted that Press Release has been issued by CBIC stating that as a last chance, in the initial phase of implementation of e-invoice, it has been decided that the invoices issued by such taxpayers during October 2020 without following the manner prescribed, shall be deemed to be valid and the penalty leviable for such non-adherence to provisions, shall stand waived if the Invoice Reference Number (IRN) for such invoices is obtained from the Invoice Reference Portal (IRP) within 30 days of the date of invoice. As an example in case a registered person has issued an invoice dated 3rd October, 2020 without obtaining IRN but reports the details of such invoice to IRP and obtains the IRN of the invoice on or before 2nd November, 2020 then it shall be deemed that the provisions are complied with and the penalty imposable shall also stand waived. Notification in this regard shall be issued.

Dynamic QR Code

The suppliers having the annual aggregate turnover in excess of Rs. 500 crores were also required to generate Dynamic QR Code for B2C transactions w.e.f. 01.10.2020. Now vide Notification No. 71/2020 – Central Tax dt. 30.09.2020 the requirement to generate Dynamic QR Code has been deferred till 01.12.2020.

QR code having embedded Invoice Reference Number (IRN)

Wherever E-invoice is generated and the IRN obtained thereto is embedded in the QR code, then the said QR code can be produced electronically for verification during the transportation of the underlying goods.

Export ocean freight exemption

Exemption from tax on services by way of transportation of goods by air or by sea from customs station of clearance in India to a place outside India has been extended till 30.09.2021 vide Notification No. 04/2020-Central Tax (Rate) dt. 30-09-2020.