E-invoice mandate has been extended to companies with a turnover exceeding Rs. 10 crores from October 1, 2022. E-invoicing under GST is crucial for organizations now more than ever and the consequences of non-compliance with e-invoicing could lead to heavy penalties.
Changes in the E-invoicing Mandate over the years:
The e-invoice mandate began a phased implementation in October 2020, starting with companies earning over Rs. 500 crores. It was then extended in January 2021 to businesses turning over Rs. 100 crores. Eventually, organizations with an aggregate turnover of over Rs. 50 crores were also required to follow the mandate from April 2021. In a year’s time, in April 2022, it was extended for organizations earning over Rs. 20 crores. The latest change in the e-invoice mandate now requires companies with a revenue of over Rs. 10 crores to comply with the mandate.
GST Notifications & Applicable Dates for E-invoicing Mandates
|Turnover||GST Notification No.||Date Effective From|
|INR 500 Crores||61/2020||01/10/2020|
|INR 100 Crores||88/2020||01/01/2021|
|INR 50 Crores||05/2021||01/04/2021|
|INR 20 Crores||01/2022||01/04/2022|
|INR 10 Crores||17/2022||01/10/2022|
As per the sub-rule (4) of rule 48 of the Central Goods & Services Tax Rules, 2017, the latest addition from the government made an amendment to the GST notification no. 13/2020, as “In the said notification, in the first paragraph, with effect from the 1st day of October, 2022, for the words “twenty crore rupees”, the words “ten crore rupees” shall be substituted.”
What if the Turnover Limit in the E-Invoice Mandate is Crossed?
To help streamline the invoicing process of small and medium businesses, the latest extension of the e-invoice mandate included organizations with revenues over Rs. 10 crores.
If your business is crossing the e-invoicing turnover limit, then you must ensure that your systems and the accounts team is prepared. An e-invoice solutions provider is recommended to ease up your execution.
Read the detailed article to understand better: Crossed the e-invoicing turnover limit? Here are 5 things to do next!
What transactions are covered under E-invoicing?
- B2B (Business to Business)
- B2G (Business to Government)
- SEZ developer transactions
- Export transactions – Sales or services to customers outside India.
- Deemed Supply (say to a Distinct person)
- Deemed Exports
- Credit notes
- Debit notes