Last updated: February 20th, 2023 12:14 PM

Who is eligible for E-invoice?

In India, E-invoice is a process of generating and exchanging invoices electronically between businesses and the government. The government has introduced the e-invoicing system as part of its Digital India initiative to reduce paperwork and improve the ease of doing business in the country. As per the latest guidelines by the GSTN, businesses with an annual turnover of more than Rs. 10 crores are required to generate electronic invoices for B2B transactions. Companies must register with the e-invoicing system and generate e-invoices for all business transactions.

What is e-invoice?

The Goods and Services Tax Network (GSTN) is the government organization responsible for developing and maintaining the technological ecosystem for India's new Goods and Services Tax (GST) regime. It is the backbone of the GST regime and provides the technology infrastructure and services for filing GST returns online. It also maintains the GST portal and provides e-invoicing services for registered businesses. The GSTN has partnered with the Institute of Chartered Accountants of India (ICAI) and the National Payments Corporation of India (NPCI) to set up the e-invoicing system in India. E-invoicing is a system for automating the entire process of creating, sending, and storing digital invoices. It is an electronic version of a traditional paper invoice, which is generated and stored electronically instead of being printed and mailed. The main objective of e-invoicing is to make the invoicing process simpler, faster, and more efficient. The GSTN has introduced E-invoicing in an attempt to help streamline the process and ensure that all the necessary details are captured in a single invoice. Refer to this article to learn more about e-invoice in detail.

What are the benefits of e-invoicing?

By utilizing the e-invoicing system, taxpayers can gain the following benefits:

• E-invoicing allows businesses to streamline their invoicing process, reduce costs, and improve compliance with government regulations.
• The e-invoicing system is integrated with the GST portal, allowing businesses to generate and file their invoices directly with the GST portal, instead of having to manually submit.
• E-invoicing allows businesses to generate e-invoices, track them, and monitor their status.

What is the process?

• The invoice generated must be in a standard format defined by the government.
• All e-invoices must be uploaded to the government's e-invoicing system for validation and further processing.
• The government then checks all the details on the invoice and approves it if it is found to be accurate.
• The invoice is then sent to the buyer, who can then make the payment.

Who is eligible for e-invoice?

As per the latest guidelines by the Goods and Services Tax Network (GSTN), the following categories of taxpayers are required to generate and issue E-invoices for their business transactions:

1. Taxpayers with an aggregate turnover exceeding Rs.500 crores in any preceding financial year from 2017-18 onwards.
2. Taxpayers engaged in the export of goods or services.
3. Taxpayers who are required to deduct tax at source (TDS) under the GST regime.
4. Taxpayers who are engaged in the supply of goods or services on behalf of other registered persons, known as the 'Input Service Distributor'.
5. DTA units must issue an e-invoice applicability check under the GST applicability, if they meet other requirements for eligibility.

Note: While the above categories of taxpayers are mandated to generate E-invoices, other taxpayers can also opt to generate E-invoices voluntarily if they wish to. IndiaFilings can assist you in generating e-invoices easily and quickly.