Ever since the GST e invoice system<\/strong> was first introduced in 2020, businesses – large, medium and small, have had many questions and doubts about the topic. Although the government has made a deliberate effort to implement the e invoice system in phases, initially to businesses with a turnover of more than 500 Crore and now to more than 5 Crore turnovers, the whats and hows of the e invoice system are still unclear to some of you. To help such businesses struggling to understand some or all the aspects of GST e invoice, here is a comprehensive guide that takes you through the intricacies of e invoice system, its significance, the phased implementation, and its important role in the Goods and Services Tax (GST) regime.<\/span>[\/vc_column_text][vc_empty_space height=”35px”][\/vc_column][\/vc_row][vc_row][vc_column css=”.vc_custom_1701256854351{background-color: #fcf6e3 !important;}”][vc_column_text]<\/p>\n Click <\/span>here<\/span><\/a> for the latest notifications on e invoicing by the GST Council. <\/span>[\/vc_column_text][vc_empty_space height=”35px”][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=”35px”][vc_single_image image=”26613″ img_size=”large” alignment=”center”][vc_column_text]<\/p>\n e-Invoicing or electronic invoicing or e Invoice system<\/strong> is a process of reporting invoices to the GST portal or the <\/span>Invoice Registration Portal (IRP)<\/span><\/a>. Once a normal <\/span>GST invoice<\/span> is generated for a B2B transaction, specified particulars of the invoice must be entered in FORM GST INV-01 on the IRP. On successful submission, the IRP returns the invoice with a unique <\/span>Invoice Reference Number (IRN)<\/span><\/a> after adding a digital signature and a QR Code. This process of preparing an electronic invoice is called e-invoicing. Thus, the generated invoice is called an <\/span>e invoice or gst e invoice<\/b>.\u00a0<\/span><\/p>\n As per Rule 48(4) of the CGST Act, all the registered and eligible suppliers for e-invoicing are required to generate GST e invoices before sharing them with the buyers. Any invoice generated without a valid IRN shall not be considered as an invoice.\u00a0<\/span><\/p>\n The e-invoice system was introduced under GST with the approval of the GST Council during its 37th meeting in September 2019. e-Invoicing was implemented in phases and e invoices are mandatory for reporting business-to-business (B2B) invoices and export invoices. As per GST Notification No.13\/2020, a company\u2019s Annual Aggregate Turnover (AATO) decides e-invoicing applicability. The implementation of e-invoicing has been taking place in a phased manner, with Phase-1 calling the businesses with an AATO of over 500 Crores. The threshold has been lowered in each phase, with the latest phase (Phase-6) encompassing businesses with a turnover of more than 5 Crores. The upcoming phase is yet to be announced and is expected to include businesses with an AATO of more than 1 Crore.\u00a0<\/span><\/p>\n e Invoices thus become mandatory for registered individuals or businesses if their aggregate turnover, as determined by their PAN, exceeds the specified limit in any financial year from 2017-18 onwards. Once a company initiates the generation of GST e invoices, it must continue the same, irrespective of whether its turnover falls below the threshold limit.<\/span><\/p>\n Here are the different phases of e invoicing implementation along with the announcement year, e invoice limit<\/a><\/strong>, date of commencement and the objective. <\/span>[\/vc_column_text][vc_empty_space height=”35px”][vc_column_text]<\/p>\n<\/span>\ud83d\udd14 Latest e Invoicing Notifications\u00a0<\/span><\/span><\/h2>\n
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\n<\/span><\/li>\n<\/ul>\n<\/span>What is e Invoice System?<\/span><\/strong><\/span><\/h2>\n
\nTo fully appreciate the evolution of the GST e invoice system, it is necessary to understand what e-invoicing is<\/a> and how it has transitioned from traditional to electronic forms.<\/span>
\n<\/span>[\/vc_column_text][vc_empty_space height=”35px”][\/vc_column][\/vc_row][vc_row][vc_column offset=”vc_hidden-md vc_hidden-sm vc_hidden-xs”][vc_video link=”https:\/\/youtu.be\/DbgIr1b5oGo?si=0uMc4nZanPKRC1zp” align=”center”][\/vc_column][\/vc_row][vc_row][vc_column offset=”vc_hidden-lg vc_hidden-md vc_hidden-sm vc_hidden-xs”][vc_video link=”https:\/\/youtu.be\/DbgIr1b5oGo?si=0uMc4nZanPKRC1zp” align=”center”][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n<\/span>e-Invoicing Applicability: For Which Businesses GST e Invoices are Mandatory<\/strong><\/span><\/h2>\n
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