GST e-invoicing required for companies with a turnover of at least Rs 5 Crore
Businesses with a turnover of Rs 5 crore or more will be obligated to generate e-invoicing for all business-to-business (B2B) transactions starting from August 1, according to a new mandate notified by the Ministry of Finance. The previous requirement for e-invoicing was for companies with a turnover of Rs 10 crore or more.
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GST e-invoicing required for companies with a turnover of at least Rs 5 Crore: Key Points
- The goal of this new mandate is to increase digitalisation of transactions, provide greater transparency in sales reporting, reduce errors and mismatches, automate data entry work and improve compliance.
- The implementation of e-invoicing became mandatory for companies with a turnover of over Rs 500 crore from October 1, 2020, which then extended to those with a turnover of over Rs 100 crore beginning January 1, 2021.
- From April 1, 2021, companies with a turnover of over Rs 50 crore had to generate B2B e-invoices, while the threshold was lowered to Rs 20 crore on April 1, 2022, and then further lowered to Rs 10 crore as of October 1, 2022.
- To avail input tax credit, taxpayers must generate invoices on their internal systems or billing software and then report them to the invoice registration portal (IRP).
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