E-Invoicing For 20 Cr+ Turnover Businesses Now Enabled – New Advisory
E-Invoicing under GST limit has been revised. Read the latest update in this post. The Central Board of Indirect Taxes and Customs (CBIC) has issued a Notification No. 01/2022- Central Tax, dated 24th February 2022 notifying the taxpayers regarding the revised eligibility for e-Invoice generation under GST. This short e invoicing India article, discusses the recent notification in detail. In this article, we will also discuss the best e-Invoicing software that is specially built for small businesses and their e-Invoice generation requirements.
PGBP
Disha Tahaliyani
5/9/20251 min read
E-Invoicing under GST Eligibility Revised
The Government of India has taken a highly anticipated move be revising the eligibility of the e Invoicing under GST.
The new notification now makes e Invoicing mandatory for all the businesses whose annual aggregate turnover exceeds Rs. 20 Crore.
This means that many new small businesses are now going to be incorporated in the e-Invoicing system.
This shall come into effect from 1st April 2022.
What is the meaning of ‘Annual Aggregate Turnover’?
As per Section 2 (6) of the CGST Act, 2017, ‘Annual Aggregate Turnover’ includes:
1. Taxable supply
2. Exempted Supplies
3. Nil-rated Supplies
4. Non-GST Supply
5. Non-taxable supplies
6. Branch transfer to distinct persons.
NOTE: e-Invoicing under GST is mandated ONLY for the B2B Invoices
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e-Invoicing will benefit small businesses
Bringing more and more businesses under the e-Invoicing system is the ultimate aim of the Government to enhance transparency and improve the reach of small businesses so that they can trade with large businesses as well.
This comes as no surprise that the CBIC has now mandated businesses whose annual aggregate turnover exceeding Rs. 20 Crore for e Invoicing under GST.
Hence, small businesses must understand that this provision will help them protect their businesses from counterfeit invoices and fake suppliers.
Following are some of the direct benefits of e-Invoicing system on small enterprises:
· Elimination of counterfeit invoices
· Back-dated invoice generation will be kept in check
· Tax evasions done with help of fake invoices took a huge toll on Government’s revenue. This will now be in check.
· Small town businesses will get a platform to trade with large businesses out of their region.
· Transparency between the trader and the Government will enable faster GST return filing.
· E-Invoice data will be auto-populated in your GSTR-1 return filing and E-way Bill generation process.
· With e-Invoicing, tax authorities will have a complete trail of all the B2B invoices uploaded by the taxpayers which will help in stopping tax frauds.
· Small businesses will benefit from this provision as they will be enabled to claim maximum eligible Input Tax Credit if appropriate & on-time furnishing of the e invoice details is done.