The government had made e-invoices mandatory for businesses with annual revenue of over Rs 50 crore from April 1, 2021.
The Finance Ministry on Monday notified the change in the GST Act on the recommendation of the GST Council.
The GST e-invoicing system was implemented from October 1, 2020, for businesses with annual turnover of Rs 500 crore or more. It was later extended to businesses with over Rs 100 crore turnover from January 1, 2021.
Under e-invoicing, taxpayers have to generate invoices on their internal systems (ERP/accounting/billing software) and then report it online to Invoice Reference Portal (IRP).
The IRP validates the information provided in the invoices and returns the digitally signed e-invoices with a unique Invoice Reference Number (IRN) along with a QR code to the taxpayer.