Taxpayers with an Aggregate Annual Turnover (AATO) ranging from Rs. 5 crores to Rs. 10 crore can now utilize the e-invoice facility, as made possible by the Central Board of Indirect Taxes and Customs (CBIC).
The CBIC has enabled E-Invoicing for businesses having Rs. 5 crores or more in advance.
E-Invoices to be Compulsory for Businesses with Turnover Over Rs 5 Crore from August 1
Starting from August 1, e-invoices will be compulsory for all businesses with an annual turnover exceeding Rs 5 crore.
Officials have stated that the decision to implement this measure more than a month in advance aims to ensure a seamless transition for small businesses.
This early implementation will allow any difficulties or technical glitches to be addressed, taking into account the additional burden that may arise.
Earlier E-invoices generation was made mandatory for businesses with a turnover of Rs. 10 Crores.
You can understand about it at GST E-Invoice mandate on business cross ₹10 crore turnover or you can talk to a professional CA from our team:
Early Implementation of e-Invoicing for Businesses with Turnover of Rs 5 Crore
This early implementation period will allow the industry to ensure that any vendor supplying goods or services and surpassing the turnover threshold of Rs 5 crore is issuing e-invoices.
This measure aims to prevent any disputes regarding the availability of input tax credits (ITC).
Taxpayers will have access to view the total turnover for both the previous fiscal year and the current fiscal year, based on the returns they have submitted thus far.
If a business is registered in multiple states under one Permanent Identification Number, the Aggregate Annual Turnover (AATO) will be calculated by considering the annual turnover of all entities.
Understand about E-Invoice System
The e-Invoice System is designed for GST-registered individuals to upload all their business-to-business invoices to the Invoice Registration Portal (IRP).
Upon submission, the IRP generates and provides the user with a unique Invoice Reference Number (IRN), a digitally signed e-invoice, and a QR code.
The implementation of e-invoicing for business-to-business transactions initially became mandatory for companies with a turnover of Rs 500 crore starting from October 1, 2020.
Over time, the turnover threshold has been gradually lowered.
Thus, most businesses in India now need to generate e-invoices.
One of the best ways to generate e-invoices is using Instabill.
Moreover, if you require any kind of guidance related to E-Invoicing, please feel free to contact our business advisors at 8881-069-069.
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