E-Invoicing was implemented w.e.f. October 1, 2020. Even after 3 months of implementation, taxpayers continue to face several legal and practical issues. One of the issues pertains to applicability of E-Invoicing to taxpayers partially exempt from its issuance. The same is elaborated as under: 

Issue:

• Suppliers of following services are exempted from preparing E-Invoice:

• • Insurance or Banking services;
  • Goods Transport Agency (‘GTA’) service;
  • Passenger Transportation service; and
  • Service by way of admission to exhibition of films in multiplex screens

These suppliers are also exempt from issuance of tax invoice in specified format.

[Refer Section 31 read with Rule 54 of the Central Goods and Services Tax Rules, 2017]

• There may be situation where abovementioned suppliers also supply goods and services on which there is requirement to issue E-Invoice.
• The issue that usurps is whether such suppliers whose turnover exceeds Rs. 100 crores, need to issue E-Invoice for other goods and services or not.

NITYA Comments:

The aforesaid exemption applies to class of registered persons to issue E-Invoice and not to specified services. Thus, exemption should be qua legal entity of supplier irrespective of different businesses carried on by it. For example: if a Bank sells an asset, it will not be required to issue E-Invoice on sale of such asset as well. This view stands clarified in E-Invoice FAQs available on GSTN Portal. Consequently, tax invoices issued by taxpayers for other supplies need not be issued in specified format nor is reported to IRP.

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