E-invoice is compulsory for all GST registered persons who have aggregate turnover above a notified limit. The limit has now been reduced to Rs 20 crores annually w.e.f 1st April, 2022
The turnover limit earlier was Rs 500 crore which was reduced to Rs 100 crore from from 1st January 2021 then to Rs. 50 Crore from 1st April 2021
This amendment has been brought in effect vide Notification No. 01/2022 Central Tax dt 24.02.2022
E-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network (GSTN).
E-Invoice can be generated using existing accounting software in addition to GST Portal. It is mandatory to follow the prescribed format. Invoice Reference Number (IRN) is generated for each Invoice. JSON File has to be uploaded as created by software along with the IRN, if generated. The said IRN shall be unique identity for E-invoice for the entire financial year. Upon successful verification, the invoice will be updated with Invoice Registration Portal’s (IRP) digital signature and a QR Code shall be added. The same shall be sent to the buyer’s registered email.
As per sec 2(6) of CGST Act, 2017 “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess