Latest Update
E-Invoicing made mandatory for turnover above Rs. 20 Cr wef 1st April, 2022
The CBIC vide its Notification no. 01/2022 dated 24th February, 2022, reduced the e-invoicing turnover from present Rs. 50 Cr to Rs. 20Cr.
GST e-invoice is the introduction of the digital invoice for goods and services provided by the business firm generated at the government GST portal. The concept of a GST e-invoice generation system has been taken into consideration for the reduction in GST evasion.
E-Invoice is a system in which GST portal will authenticate the B2B invoices electronically via GSTN. Under this system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) which will be managed by the GSTN.
The information of all invoices will be transferred in real time from the einvoice1.gst.gov.in to the GST portal and e-way bill portal.
Following are the few benefits of E-Invoicing system;
- Helpful in reducing mismatch errors.
- Helpful in reducing data entry errors.
- Realtime tracking of invoices.
- Auto populated GST returns and E-way bills.
- Helpful in reducing fake GST inputs.
- Lesser possibility of surveys and audits by the department since all the information is available at a transaction level.
Turnover for applicability of e-invoicing provisions
The turnover for knowing the applicability of e-invoicing provisions will be the PAN based aggregate turnover of the assessee.
If the aggregate turnover of all GSTINs registered under a single PAN is more than Rs. 20 Cr during any financial year starting from FY 2017-18 the e-invoicing provisions will be applicable wef 1st April, 2022.
Year wise turnover for the applicability of e-invoicing provisions are briefed below;
For the FY 2017-18 e-invoicing provisions were applicable for the assessees having aggregate turnover of more than Rs. 500 Cr (Notification no. 13/2020 dated 21/03/2020) which was reduced to Rs. 100 Cr from 01/01/2021 to 31/03/2021(Notification no. 88/2020 dated 10/11/2020). Which was further reduced to Rs. 50 Cr from 01/04/2021 to 31/03/2022 (Notification no. 05/2021 dated 08/03/2021) and now has been made Rs. 20 Cr wef 01/04/2022 (Notification no. 01/2022 dated 24/02/2022)