Introduction of E-invoicing?
In its 35th meeting, the GST Council decided to implement a system of e-Invoicing, covering specific categories of persons, mostly large enterprises. Later on, it has been expanded to cover mid-sized businesses and small businesses as well.
What is E-invoicing?
‘e-Invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices and a few other documents are authenticated electronically by GSTN for further use on the common GST portal.
♦ The taxpayers must comply with the provisions of e-invoicing from the beginning of financial year 2022-23 and onwards if their aggregate turnover exceeds the specified limit in preceding financial year. Now the question arises that, how to calculate Aggregate turnover and what are the specified limits?
|Aggregate value of all Taxable supplies
(Excluding value of inwards supplies
on which RCM is applicable)
|Add: Value of Exempted supplies||XXXX|
|Add: Export of Goods or Services or both||XXXX|
|Add: Value to supplies to Deemed Distinct
♦ The Indian government has implemented the e-Invoicing system in a phased manner and these phases are categorized on the basis of Aggregate T.O.
♦ Crux: Business with turnover 10 crores or more in FY 2021-22 must comply with the provisions of E-invoicing from 1st October 2022.