The Financial Ministry of India, on Monday, has lowered the threshold mandatory for e-invoicing to ₹50 crore, which was ₹100 crore previously. This change will be applicable from April 1, 2021
The GST Council, in its 35th meeting, had decided to implement a system of e-Invoicing, which will be applicable to specified categories of persons. The CBIC formally notified the system of e-Invoicing under GST vide Notification No. 68/2019 – Central Tax, which inserted sub-rules (4), (5), and (6) under rule 48 of the CGST Rules, 2017 for the implementation of e-Invoicing.
‘e-Invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network(GSTN)
Recently the government of India has reduced the threshold for mandatory e-invoicing for business to 50 crores(annual turnover) and comes into effect from 1st April 2021. It started with businesses having an annual turnover of ₹500 crore from October 1, 2020. Then the limit was brought down to ₹100 from January 1. Ultimately, the Government intends to cover each of the GST assesses. The Central Board of Indirect Taxes and Customs (CBIC) notified the reduction in the Applicability of GST E-invoicing threshold from Rs.100 Crores to Rs.50 Crores with effect from April 1, 2021.
The Board seeks to amend notification No. 13/2020 – Central Tax, dated the 21st March 2020. But on the other hand, The Central Board of Indirect Taxes and Customs (CBIC) has exempted several service providers including banks, financial institutions, and exports from using dynamic quick response or QR code on invoices to consumers by companies having aggregate turnover of more than Rs 500 crore. Non-banking financial companies, insurance companies, banks, or financial institutions will not need to provide a QR code on electronic invoices they issue directly to consumers, the Board said in a notification.
How GimBooks is changing the landscape of E-invoicing in India
With the surge in the implementation of E-invoicing across the country, a simple, quick, and convenient app is the need of the hour for businesses to create and sharing Invoices, Quotations, e-waybills, Payment receipts, and GimBooks has it all!
With seamless GST invoice creation, and some unique features like gentle payment reminders and in-cloud storage for all your financial documents, GimBooks fits in perfect for business accounting needs, and its also compliant with the recent updates made by the Government.
Trusted by 1,500,000+ business, Easy Invoice Manager App by GimBooks has changed the landscape of how business is managing their accounts today. Gimbooks allows you to do billing and invoicing from home, office or anywhere on the go, so if your business falls under the category of business with an annual turnover of 50 crore or more. Why wait until the next financial year? Get Easy invoice Manager by GimBooks and take your invoicing and finances to next level.