E-Invoicing for Businesses with Aggregate Turnover Exceeding ₹10 Crore Will Be Mandatory from October 1
The finance ministry indicated a month ago and now it’s been officially announced that E-Invoicing will be mandatory for businesses with aggregate turnover exceeding ₹10 crores from October 1, 2022. At present, e-invoice is mandatory for businesses with an annual turnover exceeding ₹20 crores. After the recommendation of the GST Council to minimize the e-invoicing limit, Finance Ministry has issued a detailed notification of reducing the e-invoice threshold to 10 crores.
According to the report published in The Hindu BusinessLine, reducing the e-invoicing threshold would be implemented in two phases – first, for businesses having a turnover of ₹10 crores or more, and second, the business with a turnover of ₹5 crores or more. Speaking in an interview with the same journal before, Revenue Secretary Tarun Bajaj said, e-invoicing will be implemented in a phased manner; starting with the businesses having an annual turnover of ₹500 crores followed by ₹100 crores, 50 Crores, and ₹20 crores. Now, it will bring down to ₹10 crores and then ₹5 crores.
Mandatory E-Invoicing Will Not be a Financial Burden on Businesses
The government has made it clear that implemented e-invoicing conditions will not put a burden on businesses as GSTN has impaneled various e-invoicing and billing software that facilitates e-invoicing along with related compliance. Further, there are also trusted premium billing and e-invoicing software in the market that are helping businesses generate e-invoices without any hassle.
The Use of Invoice/Billing Software
It is advised to use only those Invoice/Billing software that is capable of generating and storing invoices in electronic formats. Tax authorities have provided a standard format for generating e-invoices. E-Invoice not generated in the prescribed format is neither understood by the GST System nor by the systems of suppliers and receivers.
Generated E-Invoices must have machine-readability and uniform interpretation. This is why e-invoicing standards have been prescribed. It brings complete ‘inter-operability’ of e-invoices across the entire GST eco-system. This way, e-invoices generated by one software can be read by any other one.
