On 1st August, 2022 Government announced that GST E-invoicing will be mandatory for firms whose turnover exceeds Rs. 10 crore with effect from 1st October. Earlier the limit was Rs. 20 crore but now the limit is reduced to Rs.10 crore.
Until now the limit has been reduced five times. At the forest stage in Oct 2020, the GST e-invoicing was mandatory for firms having a turnover of Rs. 500 crore then it was reduced to Rs. 100 crore, then Rs. 50 crore, then Rs. 20 crore, then Rs.5 crore, and now it’s Rs. 10 crore.
Note: The principal notification No. 13/2020 – Central Tax, dated the 21st March, 2020 was published in the Gazette of India, Extraordinary, /Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated the 21st March, 2020 and was last amended vide notification No. 01/2022-Central Tax, dated the 24th February, 2022, published vide number G.S.R. 159(E), dated the 24th February, 2022.
This limit rule will be applicable to new businesses also and it may be critical for the new companies to understand the concept of E-invoicing.
What is E-invoicing?
E-invoicing is an electronic method of sending, receiving, and storing invoice data. E-invoicing can be used for both individuals and businesses. For example, if you own a small business and want to pay your employees electronically weekly, you can use e-invoicing software to transmit that information. The advantages of e-invoicing include greater security, accuracy, speed, and cost savings compared to paper invoices.
Process of E-invoicing
The registered person who is required to issue an E-Invoice shall upload its tax invoice in a JSON file on the Invoice Registration Portal (IRP) according to the e-invoice schema in INV-01 and get back digitally signed JSON with an IRN and QR Code.
If you want a hassle-free solution for e-invoicing then try Munim Accounting Software and manage your e-invoices easily. For the first 100 users, it is free. So grab the chance now and register to get the beta version of the software.