E-invoicing under GST: E-Invocing may be mandatory from next year for GST businessmen with an annual turnover of more than Rs 1.5 crore, as per the sources. Now, ‘e-invoicing’ is mandatory for B2B transactions for taxpayers with turnover above Rs 5 crores, earlier the limit was Rs 10 crore. It is a part of the initiative to replace physical invoices with ‘e-invoices,’ which will eventually help in dispensing with the e-way bill system.
The GST e-Invoice System has also enabled the ‘E-Invoice voluntary enablement’ for Financial Year 2022-23. The mandatory current e-invoice limit is Rs 5 crore which implemented on the phased manner as follows:
| Notification No. | Effective From | Turnover |
| 61/2020 – Central Tax | 01.10.2020 | Rs 500 Cr |
| 88/2020 – Central Tax | 01.01.2021 | Rs 100 Cr |
| 05/2021 – Central Tax | 01.04.2021 | Rs 50 Cr |
| 01/2022 – Central Tax | 01.04.2022 | Rs 20 Cr |
| 17/2022 – Central Tax | 01.10.2022 | Rs 10 Cr |
| 10/2023 – Central Tax | 01.08.2023 | Rs 5 Cr |
Irrespective of the turnover, e-invoicing in GST is not applicable to various categories of registered persons as detailed in CBIC notification No. 13/2020, including:
- Insurer, banking company, or an NBFC
- Goods transport agency
- Registered individuals supplying passenger transportation
- An SEZ unit
- A government department or local authority
- Registered individuals supplying services via admission to the exhibition of cinematographic films in multiplexes
- Person dealing in B2C transactions only
GST taxpayers are subject to E-Invoice if their aggregate turnover is more than the prescribed limit. Aggregate turnover includes all types of outward supplies (sales or services) whether it is B2B or B2C, SEZ or Exports, Taxable or Exempted, everything put together needs to be accumulated to check the turnover limit for e invoicing applicability.
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