Businesses with annual turnover above ₹20 crore must generate electronic invoices from April 1 for business-to-business transactions, the State Goods and Services Tax (GST) department said on Monday.
Presently, e-invoicing is applicable to businesses with turnover above ₹50 crore. The new decision is applicable to traders who have logged ₹20 crore or above turnover in any year from 2017-18 onwards.
Traders would need to generate e-invoices for taxable goods and services and credit/debit notes issued by them. Invoices should be generated electronically before the goods are moved. To enable this, the traders need to register via the common GST portal or https://einvoice1.gst.gov.in. Businesses registered on the e-way bill portal can use that ID and password to access the e-invoicing portal.
E-invoicing enables real-time tracking of invoices prepared by a supplier.
If a supplier fails to generate the e-invoice, the recipient will not be eligible for input tax credit. Special Economic Zone(SEZ) units, insurance and banking sector, including non-banking financial firms, goods transporting agencies, passenger transport services and multiplex cinemas, have been exempted from e-invoicing.
Businesses should make the necessary changes in their software in line with the new decision, the Commissioner, State GST, said.
