Important Keyword: Notification No. 61/2020 – Central Tax, CBIC July 2020 GST notification, e-invoicing for SEZ units, e-invoicing 500 crore turnover limit, Rule 48(4) CGST Rules, Section 122 CGST penalties, GST e-invoicing applicability, Finodha GST compliance, e-invoice generation India, Notification 13/2020 amendment.
F. No. CBEC-20/13/01/2019-GST
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 30th July, 2020
Notification No. 61/2020 – Central Tax: Seeks to amend Notification no. 13/2020-Central Tax in order to amend the class of registered persons for the purpose of e-invoice.
Table of Contents
[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 amendments in notification of the Government of India in the Ministry of Finance (Department of Revenue), No.13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 196(E), dated the 21st March, 2020, namely:–
In the said notification, in the first paragraph,
- before the words “those referred to in sub-rules”, the words “a Special Economic Zone unit and” shall be inserted;
- for the words “one hundred crore rupees”, the words “five hundred crore rupees” shall be substituted.
(Pramod Kumar)
Director,
Government of India
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 13/2020-Central Tax, dated the 21st March, 2020, published vide number G.S.R. 196(E), dated the 21st March, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 61/2020 – Central Tax
Q1: What is Notification No. 61/2020 – Central Tax about?
Answer:
Notification No. 61/2020 – Central Tax amends Notification No. 13/2020 – Central Tax to:
Include Special Economic Zone (SEZ) units under e-invoicing, and
Raise the turnover threshold for mandatory e-invoicing from ₹100 crore to ₹500 crore.
Q2: From when is this amendment effective?
Answer:
The e-invoicing provisions as per Notification No. 61/2020 – Central Tax became effective from 1st October 2020.
Q3: What is e-Invoicing under GST?
Answer:
E-invoicing is the electronic authentication of invoices by GSTN through the Invoice Registration Portal (IRP).
Once validated, a unique Invoice Reference Number (IRN) and QR Code are generated for each invoice.
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Q4: Why was the turnover threshold increased from ₹100 crore to ₹500 crore?
Answer:
The threshold was raised to phase in e-invoicing gradually, allowing smaller businesses more time to adapt.
Initially, only large enterprises with turnover above ₹500 crore were brought under the system.
Q5: What is the significance of including SEZ units in e-invoicing?
Answer:
By including SEZ units, the government ensures uniform compliance and transparency across export and domestic transactions under GST.
💡 Example:
If an SEZ unit in Gujarat supplies goods to another SEZ or domestic buyer, it must now generate an IRN (Invoice Reference Number) for every invoice.
Q6: Under which rule is e-invoicing mandated?
Answer:
E-invoicing is mandated under Rule 48(4) of the CGST Rules, 2017, which empowers the government to specify classes of registered persons required to issue invoices electronically.
Q7: Who are now required to comply with e-invoicing as per this notification?
Answer:
All registered persons whose aggregate turnover in any preceding financial year from FY 2017-18 onwards exceeds ₹500 crore, including SEZ units, are required to issue e-invoices for B2B supplies.
Q8: Are SEZ developers also included in e-invoicing requirements?
Answer:
No ❌, the amendment includes only SEZ units, not SEZ developers.
This distinction ensures compliance for operational SEZ entities, not infrastructural ones.
Q9: What are the benefits of e-invoicing for large businesses?
Answer:
✅ Automatic reporting of invoices to GSTN.
✅ Faster ITC reconciliation for buyers.
✅ Reduced chances of tax evasion.
✅ Simplified compliance with minimal manual intervention.
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Q10: What happens if a business required to generate e-invoices fails to do so?
Answer:
Failure to issue e-invoices as per Rule 48(4) results in the invoice being invalid under GST law.
This means:
ITC cannot be claimed by the buyer.
The supplier may face penalties under Section 122 of the CGST Act.
Q11: How does this amendment align with India’s digital tax reforms?
Answer:
It supports the Digital India initiative and improves GST data accuracy through automation, transparency, and reduced paperwork in tax compliance.
Q12: What is the impact of Notification No. 61/2020 on small businesses?
Answer:
Small businesses with turnover below ₹500 crore are currently exempt from e-invoicing.
However, they should prepare in advance, as lower thresholds were later notified (e.g., ₹100 crore, ₹50 crore, ₹20 crore, and ₹10 crore in subsequent years).
Q13: Which previous notification was amended by Notification No. 61/2020 – Central Tax?
Answer:
It amends Notification No. 13/2020 – Central Tax, dated 21st March 2020, which originally defined the class of registered persons required to issue e-invoices.
Q14: What are the key textual changes introduced?
Answer:
The words “a Special Economic Zone unit and” were added before the earlier clause.
The words “one hundred crore rupees” were replaced with “five hundred crore rupees.”
Q15: Who issued and signed Notification No. 61/2020 – Central Tax?
Answer:
It was issued by the CBIC (Central Board of Indirect Taxes and Customs) and signed by Shri Pramod Kumar, Director, Government of India, under file number CBEC-20/13/01/2019-GST.
🏁 Conclusion
The Notification No. 61/2020 – Central Tax marks a significant step in India’s e-invoicing implementation roadmap, expanding its coverage to larger taxpayers and SEZ units.
It demonstrates the government’s focus on curbing fake invoicing, enhancing tax transparency, and simplifying GST compliance.
💡 Ensure your GST systems are e-invoicing ready!
Start your compliance journey with Finodha GST Compliance Services or automate your filings with Finodha GST Return Filing.
Download PDF: Notification No. 61/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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