What is the e-invoicing limit in GST in 2023?
As per the new announcement of the Central Board of Indirect Taxes (CBIC) Notification No. 10/2023, on e-invoicing in GST, the e-invoice applicability limit has been reduced from 10 crores to 5 crores. This e-invoice applicability limit came into effect from 1st August 2023 for the aggregate turnover of the business in any of the financial years starting 2017-18 till the last financial year. Previously, from 1st October 2022, the e-invoice was applicable only for businesses whose turnover exceeds 10 crores.
What is an e-invoice?
e-invoice is the electronic invoice generated in real-time for a transaction that happens between two businesses by the GST Invoice Registration Portal (IRP) to seamlessly process the input tax credit during GST filing. The invoice generated during the transaction will be uploaded electronically by the supplier to the IRP, which gets authenticated and acknowledged by the generation of an e-invoice with the Invoice Reference Number (IRN) and QR (Quick Response) code.
Why is e-invoice mandatory?
e-invoice was initiated with a vision to automate the input tax credit process and curb tax evasion. Since e-invoicing has become a standard for B2B invoices, every business with over 5 crores turnover now has to generate e-invoices, thereby allowing authorities to process Input Tax Credit a lot faster and reduce instances of fraud and manual data entry.
How to check if e-invoicing is applicable to your business?
When the e-invoice was implemented way back on 1st October 2020, e-invoice was applicable to businesses with an aggregate turnover of more than INR 500 crores. 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. But right from the launch, any business with a valid GST can generate an e-invoice for their business.
And, fast forwarding from October 2020 to May 2023, the 5 phase of e-invoice mandatory limit has been rolled out and as per the latest notification, the 6th phase was announced. So by now, if your business is making or made 10 crores aggregate turnover in any of the financial years from FY 17-18, then you should have already started generating e-invoice for your B2B transaction. If your turnover doesn’t cross 10 crores, but if it has crossed 5 crores in any of the years mentioned earlier, then you must generate an e-invoice from 1st August 2023. If your turnover hasn’t even crossed 5 crores yet, then it’s not mandatory for you to generate an e-invoice now, at least till the next announcement when they reduce the e-invoice turnover limit.
Getting Started with e-invoicing GST:
It’s easier than you think! To embark on this transformative journey, first, ensure your business meets the turnover criteria. Once confirmed, register on the GST e-invoice portal with your GST number. Once done, you can start generating e-invoices for all your B2B invoices either by uploading your invoices in the e-invoice’s IRP portal or directly from the ERP/POS software.
Can e-invoice generation be done using the software?
Yes, e-invoice is generated directly from the ERP/POS that has the capability to do so.
In the fast-paced realm of business, manual e-invoicing can be a cumbersome task, especially when dealing with a high volume of transactions. Gone are the days of manual uploading and IRN generation. With e-invoice automation, you can bid farewell to the complexities and say hello to a seamless process. The ERP/POS software, with its integration superpowers, sends invoices instantly to the GST e-invoice portal and gets them back in a blink of an eye. Picture this: No more manual hassles, no more delays. E-invoice automation empowers you to handle a multitude of invoices effortlessly. Instant requirements? No problem! Generate as many invoices as you need without any additional steps. Compliance with GST regulations has never been so swift and efficient!
What do you need to do from 1st August 2023 if your business falls under the e-invoice limit?
From 1st August 2023, if your business turnover is above 5 crores in any of the financial years from FY 17- 18, then you should get started with the e-invoice generation for all the B2B invoices that you generate. It can be done either in a manual way by uploading to the e-invoice portal or in an automated way, as mentioned above.
In the world of business, where time is of the essence, let automation take the lead and watch your invoicing woes fade away. Step into a new era of invoicing using Gofrugal ERP with an integrated e-invoicing GST solution. Maximize efficiency, reduce errors, and focus on what truly matters – growing your business. Unleash the power of e-invoice automation today and witness the transformation for yourself!