E-Invoicing under GST
Gaurav Yadav

Updated on February 2nd, 2024

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.

e-Invoicing under GST Eligibility Revised

e-Invoicing under GST Eligibility

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

Get E-Invoicing Ready

GSTHero e-invoicing software - Easiest and fastest way to generate e-invoice

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.

Best e-Invoicing software for small businesses

Small businesses need to prepare themselves with the infrastructure which will enable them for a smoother e-Invoice generation process.

  • Businesses must have automated e-Invoicing software that will allow them to generate e-Invoices in bulk.
  • If businesses use ERP connectors, e Invoicing process will be much faster and accurate and you can generate e-Invoice right from your existing ERP like Tally or SAP. This shall avoid the manual uploading of invoices to the Invoice Registration Portal (IRP).

Get E-Invoicing Ready

GSTHero e-invoicing software - Easiest and fastest way to generate e-invoice

GSTHero e-Invoicing solution provides:

  • Smooth processing of large volume data
  • 100% compliant with GST laws
  • Quick implementation
  • 7 layer data security
  • On-demand technical support
  • 100% automated data preparation
  • Validates IRN from ERP
  • Easy to scale

To learn more on e-Invoicing software for small businesses, check the product now!

Conclusion

Small businesses must now embrace themselves with the appropriate and authorized e-Invoicing software to enable a smoother e-Invoice generation.

Businesses that will now be freshly pulled up in the e-Invoicing system need to update their infrastructure and make some minor changes to their existing ERPs.

To learn more on e-Invoicing under GST feel free to skim through our detailed blogs.

Stay updated; stay ahead!

Until the next time….

e invoice generation

Generate complete and ready-to-use

e-Invoices in just 

1-click !

Generate e-Invoices directly from your ERP Hassle-free

  • Within minutes, integrate with Tally
  • No visit required at govt. e-Invoice portal
  •  Interlink with GSTR 1 and Built customize report
  • Print e-Invoice with QR Code and IRN

Gaurav Yadav

About the author

Gaurav is an Engineer by training with a deep interest in Economics & Finance. He has been associated with the Fin-Tech industry for quite some time now. He writes for GSTHero for topics including GST Compliance, GST Structure, etc & aims to break down complicated technical jargon into simple terms for the taxpayers.

His expertise includes GST Laws, Corporate Finance & Macro-Economics.

Follow us: