SIR PLEASE CLARIFY THE POSTION WHETHER ASSESSEE HAS TO GENERATE THE E INVOICE ON INWARD SUPPLY LIABLE FOR GST, THE FAQ MENTIOEND HERE IS NOT CLEAR, FAQ IS AS UNDER 1)

Is e-invoicing applicable to supplies liable to reverse charge?

A. If an invoice has been issued by a notified person, in respect of which reverse charge is liable to be paid under section 9(3) of the Central Goods and Services Tax Act (CGST) on the supplies made by him, then e-invoicing will be applicable.

However, when a notified person receives supplies from an unregistered person, where the reverse charge is liable to be paid under section 9(4) of the CGST Act, then e-invoicing will not be applicable.

PL CLARIFTY SUPPLYER HAS TO GENERATE FOR E INVOICE FOR RCM SUPPLY FOR SELF INVOICE OF THOSE ASSESSEE WHOSE SALE IS ABOVE 50 CRORE W E F.1.4.2021

Reply— One of the FAQs published by CBIC on e-invoicing is as follows—

Question— Whether e-invoicing is applicable for supplies involving Reverse Charge?

Answer— If the invoice issued by notified person is in respect of supplies made by him but attracting reverse charge under Section 9(3), e-invoicing is applicable.

For example, a taxpayer (say Goods Transport Agency or a Firm of Advocates having aggregate turnover more than Rs. 50 Cr.(w.e.f 01.04.2021)) is supplying services to a company (who will be discharging tax liability as recipient under RCM), such invoices have to be reported by the notified person to IRP.

On the other hand, where supplies are received by notified person from (i) an unregistered person (attracting reverse charge under Section 9(4)) or (ii) through import of services, e-invoicing doesn’t arise / not applicable.

As per the above FAQ, we can conclude that supplier of service is required to raise e-invoice if goods or services falls under section 9(3) of CGST Act where aggregate turnover is more than Rs. 50 crore. E-invoicing is applicable on B2B supplies, in case of import and purchase from unregistered person, it will be treated as B2C supply therefore provision of e-invoicing is not applicable on these transaction.