Traders with an annual turnover above ₹5 crore must prepare e-invoices from August 1 this year for business-to-business transactions, the State Goods and Services Tax department said. The decision is applicable to traders who have reported annual turnover above ₹5 crore in any of the fiscals from 2017-18 onwards. They will have to prepare e-invoices for taxable goods and services and also for credit/debit notes issued by them.
E-invoicing is currently applicable to trade transactions above ₹10 crore. Eligible traders should register on https://einvoice1.gst.gov.in and obtain their user credentials before August 1. If the trader fails to prepare the e-invoice, the recipient will not be eligible for the input tax credit.
E-invoicing is not applicable to traders who handle non-taxable goods under the GST Act. A number of entities, including SEZ units, insurance, the banking sector including non-banking financial companies, goods transporting agencies and passenger transport services have been exempted from the purview of e-invoicing.