Turnover limit for e-invoicing reduced from Rs. 50 crores to Rs. 20 crores
E-invoicing stands for electronic invoicing system and put simply, it is the exchange of the invoice documents between the supplier and the buyer through an online mechanism (a common website portal).
The Government introduced this concept to increase business efficiency (by facilitating immediate exchange of documents on real time basis and improving reconciliations) as well as to avoid tax evasions (by reducing the chances of manipulating existing invoices or generating fake invoices).
Now, coming to the main question, to whom is e-invoicing applicable? Recently, the government has issued a notification that made e-invoicing applicable to businesses having total turnover of more than Rs. 20 crores from 1st April 2022.
For example, if the turnover for the financial year ended 31st March 2022 is Rs. 21 crores, then the business is required to follow the e-invoicing rules mandatorily from 1st April 2022.
