Frequently Asked Questions

e-Invoice FAQs

As per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN). After following above ‘e-invoicing’ process, the invoice copy containing inter alia, the IRN (with QR Code) issued by the notified supplier to buyer is commonly referred to as ‘e-invoice’ in GST. Because of the standard e-invoice schema (INV-01), ‘e-invoicing’ facilitates exchange of the invoice document (structured invoice data) between a supplier and a buyer in an integrated electronic format. Please note that ‘e-invoice’ in ‘e-invoicing’ doesn’t mean generation of invoice by a Government portal.

Yes, subject to condition mentioned in Rule 48(4) of CGST Rules but Invoice Reference Number is not required to issued in case of Delivery Challans.

Needs to be generated.

e-Way bill will be generated when there is a movement of goods in a vehicle/ conveyance of value more than Rs. 50,000 (either each Invoice or in aggregate of all invoices in a vehicle/conveyance) -

  • In relation to a ‘supply’
  • For reasons other than a ‘supply’ (say a return)
  • Due to inward ‘supply’ from an unregistered person.

There is no much difference indeed. Registered persons will continue to create their GST invoices on their own Accounting/Billing/ERP Systems. These invoices will now be reported to ‘Invoice Registration Portal (IRP)’. On reporting, IRP returns the e-invoice with a unique ‘Invoice Reference Number (IRN)’ after digitally signing the e-invoice and adding a QR Code. Then, the invoice can be issued to the receiver (along with QR Code). A GST invoice will be valid only with a valid IRN.

e-Invoicing is not applicable for import Bills of Entry.

Presently, From October 1, 2020 e-invoicing is mandated for businesses with annual turnover of more than ₹500 crore. By January 1, 2021 it is available to taxpayers having turnover more than ₹100 crore a year. It will be finally made available to all taxpayers for B2B transactions from April 1, 2021.

As per latest notification, e-invoicing will be mandatory w.e.f. 1st January, 2021, for notified classes of registered persons (those having aggregate annual turnover at PAN level more than Rs. 100 Crores).

e-invoice has many advantages for businesses such as Auto-reporting of invoices into GST return, auto-generation of e-way bill (where required). e-invoicing will also facilitate standardisation and inter-operability leading to reduction of disputes among transacting parties, improve payment cycles, reduction of processing costs and thereby greatly improving overall business efficiency.

Businesses will continue to issue invoices as they are doing now. Necessary changes on account of e-invoicing requirement (i.e. to enable reporting of invoices to IRP and obtain IRN), will be made by ERP/Accounting and Billing Software providers in their respective software. They need to get the updated version having this facility.

GST Services

The Goods and Services Tax (GST) is a tax on the supply of goods and services. It is essentially a tax on the value addition at each stage and a supplier at each stage is permitted to claim set-off, through an input tax credit mechanism i.e. the tax paid on the purchase of goods and services is available for set-off against the tax to be paid on further supply of goods and services. The Act, Rules and the rate of GST across all Indian states including union territories are uniform.

The rate structure consists of four slabs i.e. 5, 12, 18 and 28 per cent, GST compensation cess on selected goods besides goods which are taxed at nil rate (fully exempt). GST tariff should be referred to, to know tax rate for respective goods and services.

Only supplies made to SEZ has been notified as Zero rated supply. Supplies to EOU has not been notified under Zero rated supply so it shall be treated as normal taxable supplies.

If reverse charge is applicable on a particular supply then the composition dealer has to pay GST under reverse charge as a recipient of supply at normal GST rates as applicable.

Exports are classified as zero-rated supplies under GST. These are not exempted services therefore tax invoice is required to be issued in case of export of services.

There are a total of 11 types of returns under the GST.
• GSTR-1: monthly return for outward supplies
• GSTR-2: monthly return for inward supplies
• GSTR-3: monthly return containing details from other monthly returns filed by the     taxpayer (GSTR-1, GSTR-2, GSTR-6, GSTR-7)
• GSTR-4: quarterly return
• GSTR-5: variable return to be filed by Non-Resident Taxpayers
• GSTR-6: monthly return to be filed by input service distributors
• GSTR-7: monthly return to be filed for Tax Deducted at Source (TDS) transactions
• GSTR-8: monthly return to be filed by e-commerce operators
• GSTR-9: annual return
• GSTR-10: final return to be filed when terminating business activities permanently
• GSTR-11: to be filed by taxpayers with a Unique Identity Number (UIN)

GST Filing

Quarterly Return, Monthly Payment of Taxes (QRMP) Scheme is a scheme to simplify compliance for small taxpayers. Under this scheme, taxpayers having an aggregate turnover at PAN level up to Rs. 5 crores can opt for quarterly GSTR-1 and GSTR-3B filing. Payment can be made in the first two months by a simple challan in FORM GST PMT-06. For the ease of taxpayers, system has assigned quarterly frequency to small taxpayers automatically.

a) without opting for the same?
 

A: Taxpayers eligible for the simplified compliance scheme were assigned quarterly frequency by the GST system. All taxpayers were informed regarding the frequency assigned to them by e-mail and SMS.

b) even when my aggregate turnover on PAN is greater than Rs. 5 crores?
 

A: For determining the eligibility for QRMP, the turnover was determined based on the values declared by taxpayers in Table-3.1 of GSTR-3B (except inward supplies attracting reverse charge) for the Financial Year 2019-20. If a component of the turnover, like exempted or non-GST turnover, was not declared by a taxpayer in GSTR-3B or was declared in next financial year, then the turnover computed by the system for such taxpayers could be less than Rs. 5 crores. Such taxpayers may have been assigned to QRMP based on values declared by them in GSTR-3B. Such taxpayers are advised to opt-out of scheme for quarter Apr-Jun’21 by 30th April 2021.

c) even when my aggregate turnover on PAN is up to Rs. 5 crores?
 

A: At the time of assigning the frequency by the system, system considered the aggregate turnover of the taxpayer and the filing status of FORM GSTR-3B for the month of October 2020. If the said GSTR- 3B was not filed till 30th November 2020, the taxpayer was assigned to monthly frequency. The system allows the taxpayer to opt for QRMP scheme only if the last applicable return in FORM GSTR-3B, whose due date is over, is filed.


Illustration:
If the taxpayer is trying to opt for QRMP Scheme on 25th Feb’21, from Quarter Apr-Jun’21 onwards then it will be allowed only if the return in form GSTR-3B is filed for the month Jan’21.

If the taxpayer is trying to opt for QRMP Scheme on 19th Feb’21, from Quarter Apr-Jun’21 onwards then it will be allowed only if the return in form GSTR-3B is filed for the month Dec’20.

The last date to choose or change the filing frequency for the quarter of January to March 2021 was 31st January 2021. After 31st January 2021, the filing frequency cannot be changed for the quarter January to March 2021.
 

However, for the quarter of April to June 2021, taxpayers may change their filing frequency from quarterly to monthly from 1st February 2021 to 30th April 2021.
It may be noted that profile selection is not a recurring requirement every quarter. Once a frequency has been opted for, it is applicable for all future periods unless changed further.
 

Invoice Furnishing Facility (IFF) is an optional facility made available as per Rule-59(2) of the CGST Rules, 2017. This is provided for those quarterly taxpayers who want to pass on input tax credit (ITC) to their recipients (buyers/customers) in first two months of a quarter. Since IFF is an optional facility, it poses no additional compliance burden. It is a facility for those quarterly filers who intend to pass ITC to their recipients in first two months of the quarter. It may be noted that since IFF is an optional facility, IFF for a month will expire after the due date of 13th of next month and cannot be filed after this date.
 

Invoice Furnishing Facility (IFF) is an optional facility to those taxpayers who want to pass on input tax credit (ITC) to their recipients (buyers/customers) in first two months of a quarter. Those taxpayers who do not have to pass credit to their recipients need not file IFF in the first two months of the quarter. They may declare their outward supplies in the quarterly FORM GSTR-1. It may be noted that since IFF is an optional facility, IFF for a month will expire after the due date of 13th of next month and cannot be filed after this date.

While remitting payment through challan, the taxpayer has to select “Monthly Payment for Quarterly Taxpayer” option. In first two months of the quarter, payment of liability can be made by either of the following two methods:
 

a) Fixed Sum Method: Portal will generate a pre-filled challan in Form GST PMT-06. The system generated pre-filled challan in this case is commonly also known as 35% challan.

b) Self-Assessment Method: The actual tax due is to be paid through challan, in Form GST PMT-06, by considering the tax liability on inward and outward supplies and the input tax credit available for the period as per law.

The due date for making payment by challan is 25th of the next month.
 

In fixed sum method, the taxpayer is required to pay a system generated challan in the first two months of a quarter. The system generated pre-filled challan in this case is commonly also known as 35% challan. If fixed sum method is opted for by the taxpayer & there is no ITC to be passed in that month, then except for paying system generated challan, no other compliance requirement is there in the first two months of the quarter.
 

Under the fixed sum method, depending on the filing frequency in the previous quarter, the 35% challan is calculated by either of the following methods:
 

Method (a):
An amount which is equivalent to the amount paid as tax from electronic cash ledger in their GSTR-3B return for the last month of the immediately preceding quarter, where the GSTR-3B return was furnished on monthly basis.

OR

Method (b):
35% of amount paid as tax from electronic cash ledger in their return for the preceding quarter, where the GSTR-3B return was furnished on quarterly basis; or
It may be noted that since QRMP scheme is introduced in January 2021, all taxpayers were monthly filers in December 2020. Hence, the 35% challan will be populated as per method (a) for the quarter of January to March 2021 for quarterly filers.
 

Illustration:
 

Method (a):
Taxpayer paid liability by cash amounting to Rs. 5500/- [IGST: Rs. 2,000/-, CGST: Rs. 1,000/-, SGST: Rs. 2,500/-] in monthly GSTR-3B for December 2020. The 35% challan generated as per the fixed sum method for January to March 2021 quarter will be of Rs. 5,500/- with the same head-wise break-up.

Method (b):
Taxpayer paid liability by cash amounting to Rs. 7000/- [IGST: Rs. 1,000/-, CGST: Rs. 2,000/-, SGST: Rs. 4,000/-] in quarterly GSTR-3B for January to March 2021. The 35% challan generated as per the fixed sum method for April to June 2021 quarter will be of Rs. 2,450/- [IGST: Rs. 350/-, CGST: Rs. 700/-, SGST: Rs. 1,400/-].
 

Supplies made to unregistered persons (also called B2C supplies) are not required to be declared in IFF. These may be declared in FORM GSTR-1 for the quarter.

Taxpayers will be provided with a draft GSTR-3B, which will contain the details of the liability to be paid by taxpayers in the quarterly GSTR-3B. This will be prepared based on the supplies declared in FORM GSTR-1 for the quarter. It will also contain data from the optional IFF, if any is filed in either of the first two months of the quarter. The said system computed values will also be auto- populated in quarterly GSTR-3B.

In first two months of the quarter, no declaration pertaining to ITC is required to be made. The available ITC for the entire quarter will be made available by the system in quarterly FORM GSTR-2B. This quarterly facility will be in addition to the FORM GSTR-2B being made available on monthly basis, which can still be used for doing self-assessment.
 

Filing frequency either monthly or quarterly can be selected as per timelines mentioned in below table.

Kindly navigate: Services > Returns > Opt-in for Quarterly Return
 

Effective Quarter (1)Period during which filing frequency can be selected
 (2)
Last date for selecting the filing frequency
(3)
January–February– March1st November to 31st January31st January
April – May – June1st February to 30th April30th April
July – August – September1st May to 31st July31st July
October – November – December1st August to 31st October31st October

QRMP taxpayers can only file refund applications for the quarter.

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