More than 100,000 small and medium-sized enterprises currently fail to adhere to e-invoicing regulations established under the Goods and Services Tax (GST) Framework, which is obligatory for businesses with an annual turnover exceeding Rs 5 crore.
E-invoicing facilitates instantaneous access to GST invoices generated by suppliers during the purchase of goods, enabling quicker availability of input tax credits.
This serves to restrict the manipulation of fraudulent credit, as it must be generated prior to the transaction. Non-compliance is primarily prevalent among businesses with turnovers ranging from Rs 5 crore to Rs 20 crore.
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An official source indicates that 20-30 percent of businesses falling within the turnover threshold are yet to achieve compliance. Authorities are actively issuing notifications to address this non-compliance issue.
