More than 100,000 Small and Medium-sized Businesses violate GST e-invoicing rules

Over 100,000 small and medium-sized firms are non-compliant with e-invoicing requirements under the goods and services tax (GST) system, which is a necessary requirement for businesses with an annual turnover of more than Rs. 5 crore.

E-invoicing allows for real-time access to invoices issued by the supplier on the purchase of goods, allowing for speedier access to input tax credit and preventing the manipulation of fake credit because it must be generated prior to the transaction.

“The default has been reported primarily in businesses with a turnover of Rs. 5 crore to Rs. 20 crore,” said a senior official.