- The Central Board of Indirect Taxes and Customs New Delhi on the 30th September 2020 came out with a press release. Initially, the Government had in December 2019 prescribed Taxable Person having aggregate Annual turnover more than Rs. 100 crores in any preceding Financial Year will be required to issue e-invoice for all the Business to Business (B2B) supplies as per Rule 48(4) of the CGST Rules, 2017 w.e.f. 1st April 2020.
- In March 2020, the date of implementation of e-invoice was extended to 1st October 2020. In view of the hardship being faced by Trade & Industry due to Covid 2019, in July 2020, it was further observed that the taxpayers having aggregate turnover of Rs. 500 Cr. and above only would be required to issue e-invoice w.e.f. 1st October 2020.
- It has been seen even now trade and industry is not ready. Accordingly, it has been decided that the invoices issued by such taxpayers during October 2020 without observing procedure laid down under Rule 48(4), shall be deemed to be valid and the penalty under Section 122 of the CGST Act, 2017, shall not be leviable if the Invoice Reference Number (IRN) for such invoices has been obtained from the Invoice Reference Portal (IRP) within 30 days of date of invoice.
- For example, a registered person who 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, it shall be deemed to be compliance of Rule 48 (5) of the CGST Rules, 2017 and NO penalty shall be imposable U/s 122 CGST Act, 2017.
- It has been notified that Notification shall follow. It has been clarified that no such relaxation would be available for the invoices issued from 1st November 2020 and provisions of Rule 48(4) shall have to be followed failing which penalty under Section 122 shall be imposable.
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