Businesses having a turnover of more than Rs 20 crore will be required to issue electronic invoices for B2B transactions beginning April 1, according to the Central Board of Indirect Taxes and Customs. E-invoicing for business-to-business (B2B) transactions became necessary under Goods and Services Tax (GST) law on October 1, 2020, for enterprises with a turnover of more than Rs 500 crore, and was later extended to those with a turnover of more than Rs 100 crore on January 1, 2021. Companies having a turnover of more than Rs 50 crore began generating B2B e-invoices from April 1, last year. This is now being extended to businesses with a turnover of more than Rs 20 crore. With this, additional vendors will be forced to issue e-invoices beginning April 1, 2022. If the invoice is not genuine, the recipient will not be able to claim input tax credit on it, in addition to any relevant penalties.
Phases of E-Invoicing Implementation — Synopsis of Changes
1. In the first phase, CBIC issued Notification No. 13/2020–Central Tax on March 21, 2020, requiring taxpayers with a turnover of more than INR 500 crore to produce e-invoices beginning October 1, 2020.
2. In the second phase, CBIC issued Notification No. 88/2020–Central Tax on November 10, 2020, requiring taxpayers with a turnover of more than INR 100 crore to produce e-invoices beginning January 1, 2021.
3. The CBIC announced in Notification No. 05/2021–Central Tax dated March 8, 2021 that taxpayers with a turnover of more than INR 50 crore must furnish e-invoices commencing April 1, 2021.
4. In the fourth phase, the CBIC has issued a modification to Notification 13/2020, vide Notification No. 01/2022 – Central Tax dated February 26, 2022, to announce such turnover limit from INR 50 crores to INR 20 crores in the following manner: