Is an e-invoice mandatory for reverse charge?

What happens if I don't generate an e-invoice?

What will happen if I do not produce an e-Invoice? The invoice is invalid under GST, and you can be fined ₹10,000 per invoice or 100% of the tax payable, whichever is greater.

Who is required to use e-invoicing?

As there is no federal mandate for e-Invoicing, there are currently no specific penalties for non-compliance. However, in states where e-Invoicing is required for B2G transactions, failure to comply could result in delays in payment or rejection of invoices.

Is an e-invoice mandatory for B2C transactions?

E-invoicing is not mandatory for B2C, as these invoices are not eligible for input tax credit (ITC).

Do freelancers need to issue an e-invoice?

E-invoicing is mandatory only if your annual turnover is RM500,000 or above. If your turnover is below RM500,000, you are permanently exempted. Freelancers and micro-businesses above this threshold must comply according to the phased rollout schedule.

Is an e-way bill required for a B2C transaction?

Yes. As per the e-way bill rules, e-way bill is required to be carried along with the goods at the time of transportation, if the value is more than Rs. 50,000/-. Under this circumstance, the consumer can get the e-way bill generated from the taxpayer or supplier, based on the bill or invoice issued by him.

Is reverse charge mandatory?

As per Section 24 of the CGST Act 2017, it's mandatory for someone paying tax through the Reverse Charge Mechanism (RCM) to register, irrespective of the turnover amount, even if it is below the threshold limit.

What services are exempt from reverse charge?

Which construction services are exempt from the reverse charge?

• Professional services of architects and surveyors.
• Drilling for oil or natural gas.
• Manufacture of building components, such as machinery and utility systems.

What is the VAT reverse charge in Germany?

What is the reverse charge procedure? The reverse charge procedure is a regulation that is anchored in German and European VAT law on the basis of Article 196 of the German VAT Act (UStG). In most cross-border supplies of goods and services between taxable companies, the tax liability is shifted to the recipient.

What are the invoicing rules under reverse charge?

If you need to issue a reverse charge invoice, it should follow these general rules: There should be no VAT charge on the invoice, only the net amount for the goods or services. List the VAT as 0% just as you would for zero-rated or exempt sales.

What is the new 30 day e-invoice rule from April 1 2025?

The e-invoicing system is mandatory for all B2B and B2G businesses with an annual aggregate turnover exceeding Rs. 5 crore. Starting 1 April 2025, businesses with an AATO of Rs. 10 crore or more must upload their invoices to the IRP within 30 days of issuance.

Is e-invoicing applicable for supplies involving reverse charge?

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 in a FY is more than Rs.

What if I don't make an e-invoice?

If you don't generate an e-invoice when required, the following issues affect your business: Your invoice becomes invalid under the GST law. Your customer can't claim ITC. You may face penalties up to ₹25,000 per invoice.

Who needs to do an e-invoice?

If the taxpayer's annual turnover or revenue subsequently reached / exceeded RM1 million in YA2026 onwards, the taxpayer is required to implement e-Invoice starting from 1 January in the second year following the YA in which the total annual turnover or revenue reaches RM1 million.

Do I need to invoice if I'm self-employed?

In any case, invoices are an essential part of the accounting and bookkeeping process: they serve as crucial records of business transactions and are vital for tax returns (you may need to produce such records if HMRC ever ask to see your accounts).

What if an e-invoice is not generated within 30 days?

Penalties: In cases of non-generation of e-invoice, 100% of the tax or ₹10,000, whichever is higher, is the penalty for each invoice.

Why is an e-invoice compulsory?

In India, goods are still purchased on credit. The duration of credit is decided on the mutual agreement of both parties. In some cases, customers fail to make a payment even after the due date. At that time, you can authoritatively ask for a payment quoting the invoice number that you have sent them.

What is a self-billed e-invoice?

What is a Self-Billed e-Invoice? A self-billed e-invoice is a document issued by the Buyer rather than the supplier to document an expense. According to the IRBM e-Invoice Guideline, self-billed e-invoices are particularly important in specific circumstances such as foreign transactions.

What are the e-invoicing regulations?

An e-invoice mandate is a regulatory requirement imposed by a government or a governing body that mandates electronic invoicing systems for businesses. It specifies that businesses must generate, transmit, and/or receive invoices in electronic format instead of traditional paper-based invoices and PDFs.

Who is exempted from generating an e-invoice?

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. Supplier of Services by way of admission to the exhibition of films.