Invoice is a critical document, and e-invoicing is a related reform, it is critical for businesses to fully understand it and plan accordingly.
What is e-invoice?
The B2B invoices that are electronically uploaded and authorized by the designated site are called "Electronic invoicing" or "e-Invoice".
Who are covered under e-invoicing?
Annual Turnover | New deadline for mandatory e-invoicing implementation |
Exceeding 500 crore | 1st Oct 2020 |
Exceeding 100 crore | 1st Jan 2021 |
Exceeding 50 crore | 1st Apr 2021 |
Exceeding 20 crore | 1st Apr 2022 |
Exceeding 10 crore | 1st Oct 2022 |
Exceeding 5 crore | 1st Aug 2023 |
So, now it means that any person who's turnover was greater then 5cr in any of last 5 FY, needs to issue E-invoice from 1st Aug 2023.
What types of businesses will be able to use e-invoices?
All businesses that are GST-registered and issue B2B invoices will be required to use electronic invoicing.
What supplies are covered by e-invoicing?
Supplies to registered individuals or organizations (B2B), Supplies to Special Economic Zones (SEZs) (with/without payment), Exports (with/without payment), and Deemed Exports are now covered by e-invoice.
Is e-invoicing applicable to Nil rated or wholly exempted supplies?
No, a bill of supply is issued instead of a tax invoice in these cases.
Benefits of e-invoicing:
Reduces the need to report the same invoice details in multiple forms. It's just a one-time upload, and everything will be pre-populated as needed.
Only the transporter details need to be updated since Part-A of the e-Way bill will be automatically captured.
When invoices are uploaded, the B2B details are automatically captured in the GSTR-1 return.
Significantly reduced input credit verification challenges because the same data will be reported to both the tax department and the buyer in his inward supply (purchase) register (GSTR-2A).
Link for e-invoicing applicability calculator:
We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.
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