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Action in respect of non-issuance of e-invoices by notified class of taxpayers who are mandatorily required to issue e-invoice as per legal provisions
👉 Analysis of key statistics (relating to e-invoice) shows that there is a huge gap between the number of eligible taxpayers based on their turnover and the number of e-invoices shown generated against these taxpayers indicating less generation or non-generation of e-invoice on their part.
✔️The tax authorities may find the reasons for non-issuance of B2B and Export Invoices through e-invoicing by such taxpayers. If it is reported by the taxpayers that they have not exceeded the prescribed threshold limit Under Rule 48 (4) of the CGST Rules of are exempted from issuance of e-invoice under relevant legal provisions notifications, they may be advised to declare their exempted category on the functionality on the portal by using the functionality recently provided by GSTN. If the reasons are not in accordance with the provisions of the Rules and the relevant notifications, the taxpayers may be nudged and advised to immediately start issuing invoices through e-invoicing
✔️ The tax authorities may also inform the taxpayers (who have exceeded annual aggregate turnover and are mandatorily required to issue invoices through e-invoicing) about the provisions of Rule 48 (5) of CGST Rules providing that any invoice issued by such taxpayers, in the manner other than the manner prescribed Under Rule 48 (4) of the CGST Rules, i.e, other than e-invoicing, shall not be treated as valid invoice. They may also be informed that they will be liable to penalty Under Section 122 (3) (c) of CGST Act in case of their failure to issue invoices through e-invoicing system
✔️ In case of continuous non-compliance of the provisions of Rule 48(4) of CGST Rules by the taxpayers, who are otherwise required to issue invoices for B2B and export transactions through e-invoicing appropriate penal action, as mentioned above, may be initiated under the CGST Act and Rules made thereunder. To begin with emphasis should be laid on the taxpayers who have exceeded aggregate turnover of more than Rupees Fifty Crore, as sufficient time has a lapsed since e-Invoicing has been made mandatory for these taxpayers from April, 2021
✔️Any systemic issues faced by such taxpayers for issuance of e-invoices may be brought to the notice of GSTN / NIC for subsequent remedial action
Regards 🙏
CA PRADEEP MODI
9433033882
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