E-invoicing will be mandatory from August 1 for traders with annual turnover above ₹5 crore, the State Goods and Services Tax department has said. The decision applies to traders who have reported an annual turnover above ₹5 crore in any of the fiscals from 2017-18 onwards.
They must prepare e-invoices for taxable goods and services and also for credit/debit notes issued by them. If the trader fails to prepare the e-invoice, the recipient will not be eligible for input tax credit. E-invoicing is not applicable to traders who handle non-taxable goods under the GST Act.
Entities such as SEZ units, insurance, the banking sector including non-banking financial companies, goods transporting agencies and passenger transport services are exempted from the e-invoicing scheme. E-invoicing was applicable to transactions above ₹10 crore until the revision.
