Post by: Isha Purohit in GST GST in India
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In which case is e-invoice mandatory?
In which case is e-invoice mandatory?
In India, e-invoicing is becoming popular as a way to streamline the invoicing process. E-invoice is an electronic system that allows companies to issue, receive, and store invoices. This system helps to reduce paperwork, eliminate errors, and improve the accuracy of invoices.
E-invoicing is mandated by the Indian government for businesses with a turnover of more than Rs. 10 crores. This rule was introduced in April 2020 as part of the Goods and Services Tax (GST).
The e-invoicing system is integrated with the GST Network. It aims to reduce paperwork and improve the process of filing GST returns.
In which cases is e-invoicing required?
In India, e-invoicing is mandatory for certain businesses based on their turnover and industry sector. The e-invoicing system is governed by the GST (Goods and Services Tax) Council and is implemented by the National Informatics Centre (NIC). Here are the circumstances in which e-invoicing is required in India:
- Turnover: Businesses exceeding an annual turnover of Rs. 10 crore are required to generate e-invoices.
- Industry sector: E-invoicing is mandatory for businesses engaged in the following sectors:
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Companies involved in manufacturing goods with an annual turnover of Rs. 10 crore or more.
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Service providers with an annual turnover of Rs. 10 crore or more.
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Exporters
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Importers
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Special Economic Zone (SEZ) units
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Goods Transport Agencies (GTA) who have opted for the composition scheme under GST.
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Insurers, banking companies, financial institutions, and non-banking financial companies.
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Note: E-invoicing is mandatory for these businesses only if they are registered under GST. Additionally, e-invoicing is mandatory for businesses that are required to get their accounts audited under the Income Tax Act.
In addition to being mandatory for businesses with a turnover above Rs. 10 crore, e-invoicing is also required for companies that are registered with the Central Board of Indirect Taxes and Customs (CBIC). This includes businesses registered under the Indian Customs Electronic Commerce Portal (ICECP). E-invoicing is mandatory for businesses selected for the National E-Invoicing Pilot Project. This project is being implemented by the National Informatics Centre (NIC) and is aimed at promoting the use of digital invoicing across the country.
Finally, companies that are registered under the Central Excise Act are also required to use e-invoicing. It is also mandatory for all businesses that have opted for the Composition Scheme, as well as businesses issuing invoices for exports.
Refer to this article to learn more about the eligibility criteria for e-invoice.
How can e-invoice benefit your business?
In today’s digital world, e-invoicing is becoming a necessity for businesses in India. Being an electronic form of invoicing that is used to streamline the process of generating and sending invoices, it is becoming popular due to its efficiency and cost savings. The e-invoicing system is designed to improve transparency and boost compliance with GST regulations.
It requires businesses to generate a unique e-invoice number for each invoice they issue. This number is then transmitted to the GST Network, which stores the invoice information in its database. The e-invoicing system helps to reduce human errors, ensures accuracy in accounting and streamlines the process of claiming GST credits.
IndiaFilings can assist you in generating e-invoices for your business easily and quickly.
