E-invoice Exemption Declaration Functionality Made Available (1)

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E-invoice Exemption Declaration Functionality
Made Available
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The applicability of e-invoicing for a business
is determined by its aggregate turnover, and as
the regulatory landscape evolves, compliance
requirements have undergone transformative
shifts. In this article, we explore the latest
development in the realm of e-invoicing with the
introduction of the E-invoice Exemption
Declaration Functionality.
This new feature has been made available on the
e-Invoice portal to cater specifically to
taxpayers who are by default enabled for
e-invoicing but are exempted from implementing it
under the Central Goods and Services Tax (CGST)
Rules. We delve into the significance of this
functionality, its benefits for exempted
businesses, and the implications it holds for the
broader e-invoice ecosystem.
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The E-invoicing Mandate
As per GST Notification 10/23, the E-invoice
Mandate has been extended to encompass companies
with a turnover exceeding Rs. 5 crores from 1st
August 2023. This development highlights the
crucial importance of generating E-invoicing
under GST for organizations, as the consequences
of non-compliance with e-invoicing could lead to
heavy penalties.
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Exemptions from E-invoice Mandate

• According to Rule 48(4), the following classes of
  people are exempt from the e-invoice mandate and
  need not generate an e-invoice under GST.
• Banks, Insurance Companies, and Financial
  Institutions including but not limited to NBFCs.
• Goods Transport Agency
• Passenger Transport Services
• Supplier of Services by way of admission to the
  exhibition of films.
• Special Economic Zones (SEZ) Units. (Note
  E-invoicing is applicable to Economic Zone
  Developers)
• Read about Invoice Printing Process, Mandatory
  Fields, Modes of IRN generation

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E-invoice Exemption Declaration Functionality
New GSTN Advisory
E-invoicing under GST is crucial for making an
invoice legally valid. Businesses have been
seeking confirmation from their vendors regarding
e-invoice applicability. A new feature on the GST
portal allows businesses to declare their
exemption status, but it will not override the
enablement status. The new GSTN advisory states
that the E-invoice Exemption Declaration
Functionality is now available on the e-Invoice
portal and is optional. This feature is
specifically for taxpayers who have to use
e-invoicing but are exempted from doing so under
the CGST (Central Goods and Services Tax) Rules.
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Here are the main points about this feature

• The E-invoice Exemption Declaration is optional
  and can be accessed on the e-invoice portal.
• This feature is for taxpayers who are exempt from
  e-invoicing as per the CGST Rules.
• Its important to know that making a declaration
  using this feature will not change the taxpayers
  e-Invoice status.
• The responsibility to decide on exemptions based
  on Government Notifications and report it on the
  portal lies with the taxpayer.
• The facility to report exemption declaration is
  there to make business processes easier.

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Thank You!
Read This Full Article At E-invoice Exemption
Declaration