Blue Panda Pvt. Ltd. is a manufacturing company that supplies goods to various registered dealers across India. The company had an aggregate…

CA Intermediate · Taxation · RTP · January 2025
Blue Panda Pvt. Ltd. is a manufacturing company that supplies goods to various registered dealers across India. The company had an aggregate turnover of 6 crore in the financial year 2023-24. The finance team of the company is not sure whether e-invoicing provisions are applicable to the company and is of the view that under e-invoicing system, invoices need to be generated directly on the e-invoicing portal instead of its ERP system. You are required to advise the finance team on the following questions:- (a) What is e-invoicing, and whether it would apply to Blue Panda Pvt. Ltd.? (b) Does Blue Panda Pvt. Ltd. need to create its invoices directly on the e-invoicing portal?

Suggested Answer and Working Notes:

(a) E-invoicing is a system for electronically reporting Business-to-Business (B2B) invoices to the GST system for certain notified taxpayers whose turnover exceeds 5crore in any financial year from 2017-18 onwards. Since Blue Panda Pvt. Ltd. had an aggregate turnover of 6crore in FY 2023-2024, it is required to issue e-invoices for its B2B transactions. (b) No, Blue Panda Pvt. Ltd. does not need to create invoices directly on the e-invoicing portal. The company will continue generating its GST invoices using its own Accounting/Billing/ERP system. The only requirement is that these invoices must be reported to the Invoice Registration Portal (IRP) for validation and issuance of a unique Invoice Reference Number (IRN).

Topics: Paper 3A: Income Tax Laws, Paper 3B: Goods and Services Tax

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