GST E-Invoice mandate on business cross ₹10 crore turnover

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An important update for businesses registered under GST. The government has recently announced the updates amending the E-Invoice rules. This initiative will be an important update under the GST regime and it will cover more businesses under E-Invoicing.  Let us understand the latest update of GST E-Invoice mandate on business cross ₹10 crore turnover.

What is E-Invoice?

E-Invoice or Electronic Invoice is a system used under GST Regime for B2B purposes. It is used to authenticate invoices through digital mode on the official GST Portal.

E-Invoices are authenticated online and after this happens a unique Invoice Reference Number (IRN) is generated for each invoice by IRP.

Each E-Invoice is digitally signed and has a QR Code. The process of E-Invoicing also helps in transfer of information to e-way bill portal in real time. You can learn more about E-Invoice at: E-Invoicing Under GST Regime.

Latest Update: GST E-Invoice mandate on business cross ₹10 crore turnover

As per the notification, E-invoicing will be required and will be a must starting on October 1 for companies with an overall turnover of more than 10 crore rupees. Currently, companies with an annual turnover of more than 20 crore are required to use electronic invoices.

The notification clearly states that, “In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely:- In the said notification, in the first paragraph, with effect from the 1 st day of October, 2022, for the words “twenty crore rupees”, the words “ten crore rupees” shall be substituted.”

Thus, if your business has more than 10 Crore rupees annual turnover, you now need to mandatorily generate E-Invoices starting from 1st October 2022. Otherwise, you will not be eligible to claim Input Tax Credit.

How can electronic invoicing stop tax frauds?

E-invoicing has several advantages, and one of them is that it can prevent tax evasion. Because an electronic invoice is created before any transaction is completed, the likelihood of amending an electronic invoice is negligible. Another benefit of using an electronic invoice is that it gives the authorities access to real-time data on all transactions. Due to automation and extensive inspections, e-invoicing significantly reduces the number of fraudulent GST invoices and ensures that input tax credit is claimed on actual GST invoices. If someone tries to claim a bogus tax credit, GSTN can easily track them down.

How can I generate E-Invoices easily?

One of the most efficient and effective ways to generate E-Invoices and do the e-invoicing process is through Instabill. Instabill provides an e-invoicing solution for companies that is best in class.

Furthermore, The Instabill-Mobile App  has an automatic format designed as per the required GST-Invoicing format. So all you have to do is enter the data as per the sale. Besides, you can also customize the invoicing format as per your needs.

If you have any further queries on E-invoicing or Instabill, you can contact our GST Experts at: 8881-069-069. 

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E-Invoicing Under GST Regime

oreover, If you want any other guidance relating to GST Return Filing or GST Registration, please feel free to talk to our business advisors at 8881-069-069.

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