A recent report indicates that the Indian government is thinking about making GST e-invoicing mandatory from next year for registered businesses that have an annual turnover of more than Rs. 1.5 Crore.
E-invoicing is the way through which invoices are generated and stored in electronic format. It is a more structured method and way more secure. E-invoicing can reduce fraud and evasion. The government is planning to take many companies under the GST e-invoicing system, as per sources. Earlier, the reduction of the limit benefitted the tax revenue collection.
The government has been constantly moving towards making e-invoicing a necessary part of the ecosystem for the past few years. At present, e-invoicing is mandatory for businesses having annual T.O. above Rs. 10 Crore. The efforts to reduce this annual turnover limit to Rs. 1.5 crore, would attract more businesses to normalise including e-invoicing in their billing process.
The government has not made any formal announcement yet regarding making e-invoicing mandatory for businesses with annual turnover above Rs. 1.5 crore. However, implementation would be a major move to encourage a significant number of businesses to include e-invoicing in their billing process. Also, it will make the GST system efficient and transparent.
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What Are the Benefits of GST E-Invoicing?
Efficiency: E-invoicing can aid in speeding up the process of creating and processing invoices.
Transparency: The ability to trace and verify e-invoices can help to lower fraud and evasion.
Compliance: E-invoicing can assist companies in observing GST laws.
Overall, e-invoicing offers numerous benefits, including cost savings, improved efficiency, faster payments, reduced errors, increased security, and environmental sustainability. These advantages make it an attractive option for businesses looking to streamline their invoicing processes and optimise financial operations.
Important: How Gen GST Software Makes E-invoicing Easy for Businesses
You should begin preparing for the mandated deployment of e-invoicing if you are a GST businessperson with an annual turnover of more than Rs 1.5 crore. This can be accomplished by signing up for the e-invoicing portal and being acquainted with the procedure for creating and storing e-invoices.
