PENALTY FOR NOT issuing E-INVOICE IN GST I BUYER LOSS ALSO I CA SATBIR SINGH
E-Invoice is Mandatory
Generating invoice electronically with IRN is mandatory for certain class of taxpayers, as notified by the Government from time to time.
Registered persons who are mandatorily required to issue E-invoice are as follows-:
| Ø | With effect from 01.10.2020 – Aggregate turnover Rs. 500 crores and above; | |
| Ø | With effect from 01.01.2021 – Aggregate turnover Rs. 100 crores and above; | |
| Ø | With effect from 01.04.2021 – Aggregate turnover of Rs. 50 crores and above; | |
| Ø | With effect from 01.04.2022 – Aggregate turnover of Rs. 20 crores and above |
Consequences for non-issuing E-Invoice –
No Invoice
Rule 48(5) provides that every invoice issued by a person to whom sub-rule (4) (mandatorily generation of e-invoice) applies has to be an e-invoice. If generated through any other manner than shall not be treated as an invoice. If no IRN mentioned on the invoice then consider it as if no invoice is ever generated.
Penalty
Section 122(1)(i) of the Act provides for penalty for non-issue of invoice. The said section provides that where a taxable person who supplies any goods or services or both without issue of any invoice or issues an incorrect or false invoice with regard to any such supply, he shall be liable to pay a penalty of ten thousand rupees in CGST and SGST or an amount equivalent to the tax evaded, whichever is higher.
Detention and Seizure of Goods
Noncompliance of E-Invoicing requirement may also result into detention and seizure during the movement of goods under section 129 of the Act.
Input Tax credit not Available
The input tax credit shall be denied to the recipient of goods and services as there is no invoice is ever generated.