Changes in e-invoice validations

e-invoice is implemented from 1st Oct 2020 for taxpayers having turnover above ₹ 500 crores and the same has been reduced to ₹ 100 crores from 1st Jan 2021 and from 1st April 2021 to ₹ 50 crores.

Following are the changes announced in e-invoice validations during June 2021

  1. When SEZ Developer is Supplier, only IGST is applicable irrespective of Supplier State code and POS Code.
  2. In these cases, no need to set ‘IGSTonIntra’ flag to ‘Y’ (which would have mandated RCM = ‘Y’) since this is not applicable.

It has been rolled out in a very swift manner and without any hiccups.

Circular No. 90/09/2019-GST

This was the point i am discussing with my friends and during my sessions of GST Audit that if the provisions of Rule 46 are not followed then penal provisions can be levied under Section 122 and Section 125. Rule 46 clearly states that on a tax invoice, the bare minimum details have to be shown and if any of the same are missing then 1st proviso of Section 122 can be enforced on the taxpayer which clearly states that penalty of Rs 10,000 per invoice. Refer to Section 122(1) (ii) talks about per invoice, so imagine if the department wants to issue notice for levy of penalty they can issue it per document which is not meeting the said provisions.

Now the same is officially clarified in the Circular #90/09/2019-GST

GST Audit report being prepared should cover this point also, so you can imagine the complexity, quantum of work involved and also the depth of knowledge required to execute it.


My third book on GST, ‘GOOD AND SIMPLE TAX – GST FOR YOU” is now available at

ISBN – 9781947697737

The Goods and Service Tax rolled out in India on 1st July 2017 subsuming a plethora of taxes into a single tax and enabling input tax credit at every stage of the supply chain, thereby making the products and services cheaper to the end consumer. The rollout of GST also improves the ease of doing business in India.

The way the business is carried out in India is undergoing a major change as the terms of manufacture, purchase, sale, and service is replaced with a single word called “Supply.” The author covers all these topics like Supply, Place of Supply, Time of Supply and Valuation with easy to understand examples so that the trade and industry can benefit at large from the same and change their business practices accordingly.

“GOOD AND SIMPLE TAX – GST FOR YOU” is a written in layman’s language and it explains the complex GST requirements in a simple and lucid language with examples.

  • – CS Vasudeva Rao Devaki, DV Rao and Associates

Kindle version and e-book will be released shortly

book 3


GST Tip – 291

In section 3.2 of GSTR – 3B, outward supplies of inter-State supplies made to unregistered persons, composition taxable persons and UIN holders have to be shown at a summary level along with the taxable value, tax amount by place of supply wise.

State Codes as per GST

List of State codes as per GST

State Codes as per GST

The above is the list of state codes under GST and this has to be used for the place of supply on the tax invoice. Place of supply has to be shown on the tax invoice if it is different from the location of the recipient and the same information has to be shown in GSTR – 1.