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
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:
- Taxable supply
- Exempted Supplies
- Nil-rated Supplies
- Non-GST Supply
- Non-taxable supplies
- Branch transfer to distinct persons.
NOTE: e-Invoicing under GST is mandated ONLY for the B2B Invoices
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:
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).
GSTHero e-Invoicing solution provides:
To learn more on e-Invoicing software for small businesses, check the product now!
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….