GST e-invoicing is required for companies with a turnover of at least Rs 5 crore

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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