GST e-invoice made mandatory for businesses with revenue over Rs 50 cr

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.

Also read: New 'core entity' feature in filing GST to curb fake bills menace

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.

Also read: 69.5 lakh invoice numbers generated in first week of GST e-invoicing system

Also read: Limited roll-out of GST e-invoice system unlikely to serve purpose