E-invoice, also known as an electronic invoice, is a digital document used to record commercial transactions. These invoices are sent and received electronically, eliminating the need for paper invoices. E-invoices are recognized for their efficiency and security, bringing time and cost savings to businesses.
As per the National Informatics Centre, the e-invoice system involves the authentication of B2B invoices electronically by GSTN (Goods and Services Tax Network) for further use on the common GST portal. Each invoice will be assigned an identification number by the Invoice Registration Portal (IRP) managed by GSTN.
Recently, the Goods and Services Tax department has made it compulsory for businesses with an annual turnover of 5 crore rupees or more to file e-invoices. This new rule came into effect on August 1, 2023.
The amendment was made to the notification of the Government of India, which earlier fixed the turnover threshold at 10 crore rupees starting from October 1, 2022. The recent change, announced on July 29, was tweeted by the Central Board of Indirect Taxes and Customs, stating that generating e-invoices will be mandatory for all B2B supply of Goods or Services or both, as well as for exports, for taxpayers whose aggregate annual turnover exceeds ₹5 Crore in any of the preceding financial years.