New e-invoice applicability in GST | New e-invoice limit.

Hi Friends,

In this blog, I will let you know about the new turnover for making the e-invoice and its applicability.

The GST Department has announced new criteria for e-invoicing from the 1st- of August- 2023. If any GST holder’s turnover is crossed by the prescribed limit in any previous year or current year then he needs to generate an e-invoice and issue that invoice to their customers.

If anyone has not generated the e-invoice according to the guidance of the GST department after that this type of GST holder can’t able to take their ITC.

What is e-invoicing in GST?

E-invoice in GST refers to the standardized format of electronic invoices that businesses generate and report to the government as part of the GST compliance process in India. It is a structured digital format that contains specific fields and data elements required by the GST system.

The e-invoice format in GST is based on the eXtensible Markup Language (XML) format. It includes various details related to the invoice, such as the supplier’s and recipient’s GSTIN (Goods and Services Tax Identification Number), invoice number and date, item details, quantities, values, applicable taxes, and other relevant information.

The purpose of generating e-invoices in the GST format is to facilitate seamless integration between businesses’ invoicing systems and the GST portal. It helps in automating the reporting of invoice data to the government and ensures accuracy and consistency in compliance.

The process of generating e-invoices in GST involves businesses creating the invoice in their accounting or billing software using the prescribed format. The e-invoice is then uploaded to the GST portal or GST Suvidha Provider (GSP) for validation and reporting to the government.

By implementing e-invoicing in GST, the government aims to simplify the tax compliance process, reduce errors, and enhance transparency. It also enables the automatic reconciliation of invoices and helps in curbing tax evasion by ensuring that the invoice details reported to the government match the details provided by the recipient.

Some basic points of e-invoicing***

According to the current month’s status, If your turnover is going to cross the prescribed limit of invoicing in the current financial year then, you are required to prepare the e-invoice for the next financial year.

Example – If you are in 2023-2024 and your A.T.O is 4cr Now after the auditing your turnover is crossed the prescribed limit of GST so you have to start to prepare the e-invoice from the 1st of April 2024.

E-invoice not applicability

The GST department has announced who is not required to prepare the e-invoice under the GST.

  1. Special Economic Zone unit (SEZ).
  2. Insurer
  3. Banking company, finance instructor, Non-banking finance company (NBFC)
  4. Goods Transport Agency (GTA)
  5. Supplier of passenger transport.
  6. Supplier of services by way of admission to the exhibition of cinematograph films in multiflex screen.
  7. OIDAR
  8. Exempt supplies
  9. B2C supplies

Who is required to prepare an e-invoice?

The GST department has announced who is required to prepare the e-invoice under the GST.

  1. B2B suppliers
  2. Exporters