E-Invoicing Mandate and New Growth Opportunities
The prefix ‘E’ has always brought revolution, be it with e-mail, e-banking or e-commerce. Now, it is ‘e-invoicing’ that this is gaining traction. Every company nowadays has to adhere to e-invoice limit if they fall under the e-invoice applicability turnover.
So, here’s the latest e-invoice limit update: Businesses with an annual turnover exceeding 5 crores will be mandated to issue e-invoices and will fall under the e-invoicing applicability. (w.e.f. 1st August, 2023.)
E-invoice applicability turnover under GST started in October 2020 and was made mandatory for enterprises with a turnover of over Rs 500 crore. This threshold was brought down slowly and the aggregate turnover for e-invoicing applicability is now 5 crores.
Confused? Puzzled or worried?
Let’s understand what e-invoice in GST is, e-invoicing eligibility and take it from there.
MEANING
What is e-invoice in GST?
Ever since the e-invoice mandate was approved by the GST council, there is a continued buzz in the business community. Invoice is a critical document and e-invoicing is a reform related to it. To comply, it is important for enterprises to know about it and accordingly prepare for it.
E-invoicing or ‘electronic invoicing’ refers to electronically uploading B2B invoices in a standard format that machines can read.
E-invoice would help sync the sales data of a business vendor to the corporate clients, which is used to claim the tax credit. This would help in faster and more accurate detection of false ITC claims and expand the GST base.
