The CBIC has reduced the E invoice limit for business from the existing 10 Crores to 5 Crores.
This is w.e.f. 01st Aug 2023.
Accordingly, if the turnover of the business has exceeded more than 5 Crores in any of the Financial years starting 2017-18, E invoicing will be applicable w.e.f. 01st Aug 2023.
The relevant Notification No 10/23 Central Rate dtd 10th May 2023 is reproduced at the end of this article.
FAQs on E invoicing
What is e-invoicing under GST?
E-invoicing is an electronic method of generating and exchanging invoices between businesses. It has been implemented under the Indian Central Goods and Services Tax (CGST) Act as a part of the government’s digital transformation agenda to promote ease of doing business and reduce tax evasion.
Who is required to generate e-invoices under GST?
E-invoicing is mandatory for businesses whose annual aggregate turnover exceeds INR 5 crores (as per Notification No 10/2023 Central Rate dtd 10th May 2023).
What are the technical requirements for implementing e-invoicing under GST?
Businesses need to ensure that they have the necessary technical infrastructure to implement e-invoicing. This includes compatibility with the invoice schema and standards defined by the government, integration with the Invoice Registration Portal (IRP) for invoice validation and IRN generation, and integration with the GSTN for GST return filing and reconciliation.
What are the benefits of e-invoicing under GST?
E-invoicing offers various benefits to businesses, such as improved efficiency in the invoicing process, reduction in errors and data inconsistencies, real-time tracking of invoices, faster payment processing and reduced payment delays, improved compliance, and reduced chances of tax evasion.
What is the process for generating e-invoices under GST?
The e-invoicing process involves generating invoices in the prescribed format, uploading the invoice data to the IRP for validation and obtaining a unique Invoice Reference Number (IRN) and a Quick Response (QR) code, sharing the validated e-invoice with the buyer and relevant parties, and reporting the e-invoice details in the GST returns.
What are the penalties for non-compliance with e-invoicing regulations under GST?
Non-compliance with e-invoicing regulations can attract penalties under the CGST Act, including a penalty of up to INR 10,000 for each invoice not complying with e-invoicing requirements, denial of Input Tax Credit (ITC) for invoices not reported in the GST returns, and suspension or cancellation of GST registration.
Is e-invoicing applicable to all types of businesses?
No, e-invoicing is applicable only to businesses whose annual aggregate turnover exceeds INR 5 crores. However, businesses with a lower turnover can voluntarily adopt e-invoicing if they wish to do so.
Are there any exemptions from e-invoicing under GST?
Yes, e-invoicing is not mandatory for certain categories of businesses, such as insurers, banking companies, financial institutions, and non-banking financial companies (NBFCs). Additionally, businesses engaged in the supply of goods or services through electronic commerce operators are also exempted from e-invoicing requirements.
Is e-invoicing applicable for B2C (Retail) Invoices?
No. e-invoicing is not applicable to B2C (Retail) Invoices
Is e-invoicing applicable for Export Invoices?
Yes E-invoicing is applicable for all types of exports with or without payment of GST.
