The time is here for businesses having aggregate annual turnover of Rs 10 crore and more to compulsorily generate e-invoices from October 1 onwards. As of now, businesses with turnover of Rs 20 crore and more are required to generate e-invoices for all B2B transactions.
Central Board of Indirect Taxes and Customs (CBIC) had on August 1 issued a notification regarding the October 1 deadline and lowering the turnover threshold and making it mandatory for businesses having a turnover of Rs 10 crore, to generate e-invoices.
It was the decision of the GST Council to implement e-invoices for B2B transactions.
E-invoicing for B2B transactions was made compulsory for companies with turnover of Rs 500 crore from October 1, 2020 onwards. This threshold was then lowered to entities with turnover of Rs 100 crore from January 1, 2021 onwards.
This limit was further downwardly revised to companies having a turnover of Rs 50 crore from April 1, 2021 and then to entities having turnover of Rs 20 crore from April 1, 2022 onwards.
One of the key benefits of this reduction in threshold of turnover limits is that it will gradually increase the GST tax base. It would also lead to less paperwork, seamless transmission of invoices and will also lead to auto generation of e-way bills.
Sources said that e-invoices bear a unique invoice reference number which is generated through invoice registration portal. This leads to reduction in transcriptional errors and automatic reporting to GST portal.