E-Invoicing and its Implications under GST (Goods and Services Tax Act 2017)
With effect from 1st October 2022, CBIC has notified that e-invoicing shall be mandatory for all assesses having turnover more than 10 crores in any financial year from 2017-18 to 2021-22.
- The aggregate turnover will include the turnover of all GSTIN under a single PAN across India.
- If the turnover in the last FY was below the threshold limit but it increased beyond the threshold limit in the current year, then e-Invoicing would apply from the beginning of the next financial year.
Very soon this turnover limit is likely to get revised to 5 Crores. Hence, it is advised that Small & Medium Enterprises (SME) to strengthen their internal control environment and processes (though E invoicing is not applicable at this point of time, to avoid unnecessary delays and departmental observations of non-compliance in due course). This can be achieved having an internal Professional team to address these matters proactively (if not external consultation/engagement to validate preparedness with the test environment available may be contemplated).
Turnover Reference: https://www.cbic.gov.in/resources//htdocs-cbec/gst/17_2022_CT_Eng.pdf
Earlier notification references relating to Turnover: Notification No. Aggregate Annual Turnover exceeds in any FY since 17-18 Effective Date 61/2020 dt 30.07.20 ct 500 Cr 01/10/2020; 88/2020 dt 10.11.20 ct 100 Cr 01/01/2021; 05/2021 dt 08/03/21 ct 50 Cr 01/04/2021; 01/2022 dt 24/02/22 ct 20 Cr 01/04/2022
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