E-invoicing must from April 1 for businesses with annual turnover above ₹20 crore

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 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.

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Printable version | Sep 22, 2022 9:03:42 pm |