The Government of India has made e-invoicing mandatory for businesses with an annual aggregate turnover exceeding Rs. 5 crore from August 1, 2023. This was done in order to improve the efficiency of the GST system and to prevent tax evasion.
E-invoicing is the electronic generation of invoices for business-to-business (B2B) transactions. It involves the generation of an invoice in electronic form and its submission to the GST portal. The invoice is then digitally signed by the invoice issuer and the recipient.
The benefits of e-invoicing include:
• Improved efficiency: E-invoicing can help to improve the efficiency of the GST system by reducing the need for manual processing of invoices. This can lead to faster clearance of goods and services, which can benefit businesses and consumers alike.• Prevention of tax evasion: E-invoicing can help to prevent tax evasion by making it more difficult to falsify invoices. This is because the invoices are digitally signed and stored in a secure system.
• Improved compliance: E-invoicing can help to improve compliance with the GST rules by making it easier for businesses to track their transactions. This can help to reduce the risk of penalties for non-compliance.
If you are a business with an annual aggregate turnover exceeding Rs. 5 crore, you will need to comply with the e-invoicing rules from August 1, 2023. You can do this by registering on the GST portal and generating e-invoices for all your B2B transactions.
Here are some of the things to keep in mind about e-invoicing:
• The invoice must be generated in a prescribed format.
• The invoice must be digitally signed by the invoice issuer and the recipient.
• The invoice must be submitted to the GST portal within 24 hours of its generation.
If you fail to comply with the e-invoicing rules, you may be subject to penalties, such as fines or imprisonment
