E-invoices mandatory for Traders with Turnover above Rs.5 crore from August 1st

Traders having an annual turnover of more than Rs.5 crore must generate e-invoices for B2B transactions from August 1 this year, according to the State Goods and Services Tax department. The judgement applies to dealers who declared yearly turnover of more over 5 crore in any financial year beginning in 2017-18. They will be required to generate e-invoices for taxable goods and services, as well as credit/debit notes issued by them.

E-invoicing is presently required for commercial transactions over Rs. 10 crore. Before August 1, eligible traders should register at GST E-invoice System and acquire their login credentials. The receiver will not be entitled for the input tax credit if the trader fails to prepare the e-invoice.

E-invoicing is not applicable to GST Act traders who handle non-taxable commodities. A number of institutions have been exempted from the scope of e-invoicing, including SEZ units, insurance, the banking industry (including non-banking financial enterprises), goods carrying agencies, and passenger transport services.