What effects will the e-invoicing system changes have on the business?

The government just made small firms eligible to use the e-Invoicing system. Businesses having an annual aggregate turnover of more than Rs. 10 crores will be required to generate IRN starting on October 1, 2022. And the threshold will thereafter be lowered to Rs. 5 crores from 1st January 2023.

These changes will have a huge impact on businesses. B2B invoices will have to be registered with the IRP portal which means adaptability to digitization is required for generating e-invoices. Those invoices with IRN will only be considered valid and their details will get auto-populated in GSTR 1 for suppliers and GSTR-2B/2A for their buyers. Similarly, there will be other changes that will directly or indirectly affect businesses.