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Notification No. 88/2020 – Central Tax Explained

by Shakshi Bharti | Feb 20, 2024 | GST, 2020 Notifications, Central Tax 2020 Notifications, Notifications | 0 comments

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Important Keyword: Notification No. 88/2020 – Central Tax, GST e-invoicing notification, ₹100 crore e-invoicing limit, GST turnover threshold India, Rule 48(4) CGST Act, Notification 13/2020 amendment, GST B2B invoice QR code, GST compliance Finodha, e-invoice registration portal, CBIC notification November 2020,

Words: 1189; Read time: 6 minutes.

[F. No. CBEC-20/06/04/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs

New Delhi, the 10^th November, 2020

Notification No. 88/2020 – Central Tax: Seeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 100 Cr from 01st January 2021.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R……(E). - In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21^st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21^st March, 2020, namely:-

In the said notification, in the first paragraph, with effect from the 1^st day of January, 2021, for the words “five hundred crore rupees”, the words “one hundred crore rupees” shall be substituted.

(Pramod Kumar)
Director,
Government of India

Note: The principal notification No. 13/2020 – Central Tax, dated the 21^st March, 2020 was published in the Gazette of India, Extraordinary, vide number G.S.R. 196(E), dated 21^st March, 2020 and was last amended vide notification No. 70/2020-Central Tax, dated the 30^th September, 2020, published vide number G.S.R. 596(E), dated the 30^th September, 2020.

📚 Frequently Asked Questions (FAQs): Notification No. 88/2020 – Central Tax

Q1: What is Notification No. 88/2020 – Central Tax about?

Answer:
This notification amends Notification No. 13/2020 – Central Tax, reducing the e-invoicing applicability limit from ₹500 crore to ₹100 crore, effective from 1st January 2021.
It means all registered taxpayers with an aggregate turnover above ₹100 crore in any financial year (from 2017–18 onwards) must issue e-invoices for B2B transactions.

Q2: What is e-invoicing under GST?

Answer:
E-invoicing is a digitally authenticated invoice system introduced under Rule 48(4) of the CGST Rules, 2017, where B2B invoices are electronically uploaded to the Invoice Registration Portal (IRP) and assigned a unique Invoice Reference Number (IRN).
This ensures real-time validation and seamless reporting in GST returns (GSTR-1) and e-way bills.

Q3: When did e-invoicing first come into effect in India?

Answer:
E-invoicing was first implemented on 1st October 2020 for taxpayers with a turnover above ₹500 crore, through Notification No. 70/2020 – Central Tax.
With Notification No. 88/2020, this system was expanded to ₹100 crore+ businesses starting 1st January 2021.

Q4: Which businesses are covered under this notification?

Answer:
Businesses having aggregate turnover exceeding ₹100 crore in any financial year (2017–18 onwards) are covered.
This includes:
Manufacturers
Traders
Service providers
📌 The turnover limit is calculated PAN-wise, not GSTIN-wise.

Q5: What types of invoices are covered under e-invoicing?

Answer:
The following invoices are covered:
B2B invoices (Business to Business)
Export invoices
Credit notes and debit notes
Invoices for B2C transactions are excluded.

Q6: What are the exemptions from e-invoicing?

Answer:
As per Notification No. 13/2020 – Central Tax, the following are exempt from e-invoicing:
❌ SEZ units
❌ Insurance companies
❌ Banking companies & NBFCs
❌ Goods Transport Agencies (GTA)
❌ Passenger transportation services
❌ Cinemas issuing tickets

Q7: What happens if a taxpayer fails to issue an e-invoice?

Answer:
As per Rule 48(5) of the CGST Rules, an invoice issued without an IRN (Invoice Reference Number) is invalid.
Consequences include:
Input Tax Credit (ITC) denial to the recipient,
Penalties under Section 122 of the CGST Act, and
Compliance risks during audits.
💡 Avoid such issues with Finodha’s GST Return Filing Service.

Q8: What is the legal authority for this notification?

Answer:
The government issued this under sub-rule (4) of Rule 48 of the Central Goods and Services Tax Rules, 2017, which empowers it to notify classes of taxpayers required to issue e-invoices.

Q9: How does this notification benefit businesses?

Answer:
✅ Reduces duplication of data entry
✅ Enhances invoice accuracy
✅ Simplifies e-way bill generation
✅ Reduces tax evasion risks
✅ Automates GSTR-1 preparation
It also builds credibility with vendors and the tax department.

Q10: How does the system work in real-time?

Answer:
Here’s how e-invoicing works under GST:
Generate invoice in your ERP/accounting system.
Upload it to the Invoice Registration Portal (IRP).
IRP validates data and assigns a unique IRN.
IRP returns the digitally signed e-invoice and QR code.
The same data auto-populates in GSTR-1 and e-way bills.
🚀 Automate your invoicing with Finodha’s GST Compliance Service.

Q11: Is e-invoicing applicable to export transactions?

Answer:
Yes ✅.
Export invoices are also covered under e-invoicing since they are treated as B2B transactions under GST law.

Q12: What is the QR code mentioned in e-invoices?

Answer:
The QR code is a machine-readable format containing key invoice details such as:
GSTINs of supplier & recipient
Invoice number and date
Invoice value
HSN code
IRN number
This helps verify invoice authenticity instantly using the GSTN QR code scanner.

Q13: What software or platforms can be used for e-invoicing?

Answer:
Businesses can use:
Government-registered ERPs,
GSTN-compliant accounting software (like Tally, Marg, Zoho), or
Finodha’s custom GST automation solutions.
Check your e-invoice readiness with Finodha GST Compliance Tools.

Q14: What steps should businesses take to comply with this notification?

Answer:
Here’s a quick compliance checklist:
✅ Verify if turnover exceeds ₹100 crore (PAN basis).
✅ Configure ERP for JSON-based e-invoice generation.
✅ Register with the IRP portal.
✅ Train billing staff for new e-invoicing procedures.
✅ Validate invoices and QR codes before dispatch.
💼 Need help? Finodha experts can handle your GST e-invoicing setup.

🏁 Conclusion

Notification No. 88/2020 – Central Tax is a key milestone in India’s GST digital transformation journey, extending e-invoicing to ₹100 crore+ turnover businesses.
It aims to enhance transparency, reduce fraud, and improve compliance efficiency in the GST ecosystem.

💡 Ensure your business is e-invoicing compliant today. Start with Finodha GST Compliance Services.