E-invoice enabled for businesses with annual turnover of Rs 5 crore

New Delhi, June 6, 2023

Synopsis
Officials said that enabling it over a month in advance will help in smooth transition for small businesses and will fix any difficulty faced by them and also to avoid any technical glitch, considering the added burden.

The Central Board of Indirect Taxes and Customs (CBIC) has enabled e-invoice for taxpayers with an Aggregate Annual Turnover (AATO) between Rs. 5 crore and Rs. 10 crores.

E-invoices will become mandatory for all businesses with annual turnover above Rs 5 crore from August 1.

Officials said that enabling it over a month in advance will help in smooth transition for small businesses and will fix any difficulty faced by them and also to avoid any technical glitch, considering the added burden.

Also this will give time for the Industry to ensure that any vendor supplying goods or services and crossing the threshold turnover of Rs 5 crore is necessarily issuing a e-invoice to avoid any dispute with respect to availment of input tax credit (ITC).

The taxpayers can view the total turnover for the last fiscal year and also for the current fiscal year, based on the returns submitted up to this point.

In case a business is registered in multiple states using one Permanent Identification Number, AATO will be calculated as annual turnover of all entities.

The e-Invoice System is for GST registered people for uploading all the business to Business invoices to the Invoice Registration Portal (IRP).

The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user.

E-invoicing for B2B transactions was first made compulsory for companies with turnover of Rs 500 crore from October 1, 2020 and gradually the turnover threshold has been brought down to Rs 10 crore.

[The Economic Times]