e-Invoice under GST is now mandatory
Latest update regarding the e-invoice under GST.
e-Invoice is now mandatory for businesses having annual aggregate turnover above Rs.5 Crore* for B2B supplies in any preceding financial year from 2017-18 onwards.
This e-invoicing rules will be applicable from 1st August 2023.
Latest Changes to the scope & applicability of GST e-invoicing
The GST e-invoice system’s turnover limit has been gradually reduced over time. As of August 2023, e-invoicing is mandatory for businesses with an aggregate turnover of ₹5 crore or more in any financial year from 2017-18 onwards.
The turnover includes all GST-registered entities under the same PAN across India. This threshold applies to B2B transactions, export transactions, and certain other specified categories, excluding B2C transactions.
The Ministry of Finance Vide Notification No. 17/2022–Central Tax dated 1st August 2022, has further reduced the aggregate turnover limit from INR 20 Crore to INR 10 Crore for applicability of mandatory GST e-invoicing.
Therefore, W.e.f. August 1, 2023, GST e-invoicing is mandatory for businesses having an aggregate turnover of ₹5 crore or more.
What is e-Invoice under GST?
e-Invoice is a System developed for GST registered person for generating and uploading all the B2B invoices to the Invoice Registration Portal (IRP).
The e-Invoice System is for GST registered person for uploading all the B2B invoices to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user.
Statistics on e-Invoice as of Date
Total number of e-Invoices generated in the month of July 2022 – 13.21 Crores
Total number of e-Invoice generated till date from the date implementation (22 months): 200 Crores
FAQ’s on e-Invoicing
The common portal for generation of e-invoice is https://einvoice1.gst.gov.in
There are two modes/methods of e-invoice generation.
First one is using the offline/excel tool
Second one is using the API mode – directly or through GSPs.
Yes. All the registered users under GST who wish to generate IRN need to register on E-invoice system separately using his GSTIN.