The Goods and Services Tax (GST) e-invoice new rule has been updated and now companies with a turnover of more than ₹5 crore are required to generate e-invoices for their business-to-business (B2B) transactions and exports. This rule was implemented on August 1, 2023.
Experts believe that the development of e-invoicing to MSMEs will improve the flow of input tax credit and reduce credit-related issues for suppliers. The implementation of e-invoicing has helped in reducing disruptions, improving compliances and increasing revenue.
In the long run, we will see the benefit to the overall business ecosystem by reducing costs, minimizing errors and ensuring faster invoice processing.
Here are some additional points to consider about the new GST e-invoice rule:
E-invoices must be generated through a GST-approved e-invoice platform.
E-invoices must include several mandatory details, including the invoice number, date, supplier and recipient information, goods or services supplied, and the value of the transaction.
E-invoices must be retained for at least 6 years by the new GST e-invoice rule.