Advisory: Self Enablement For e-Invoicing
If you are becoming subject to e-invoice applicability for the first time, meaning in the previous financial year you crossed a turnover of 5 crores, then you must enable Self Enablement for e-Invoicing. The GSTN portal has issued an advisory for this. Therefore, if you are eligible for e-invoicing, do not miss this compliance requirement. The threshold for e-invoice applicability has evolved over time and has been reduced to 5 crores currently. Thus, if in any financial year other than 2023-24 you crossed the 5 crore mark, it became applicable from 1st August 2023. However, if you only crossed this threshold in the last financial year, 2023-24, then it is applicable from 1st April 2024.
- If you make more than INR 5 crores in 2023-2024, you need to start using e-Invoices from April 1, 2024.
- If you haven't set up e-Invoicing yet, go to https://einvoice.gst.gov.in and pick any of the new options (IRP 3 to IRP 6) to get started.
- For using NIC IRP 1 & 2 options, visit https://einvoice1.gst.gov.in or https://einvoice2.gst.gov.in to enable yourself.
Summary about the provision of E-invoice applicability
CBIC has made the e-invoicing system mandatory for all registered persons with a turnover of more than Rs.5 crore from 1st August ,2023. (Turnover exceeds in any FY from 2017-18 and onwards).
Once E-invoicing is implemented, tax payer can not exit even though turnover comes below the applicable limit in any of the succeeding financial year.
- If in any of the preceding year it exceeds 5 crores then it will be applicable from 01.08.2023.
- If turnover is exceeding 5 crores in F.Y 2023-24 then E-invoice will be applicable from 01.04.2024.
The threshold limit for e-invoicing has changed as per CBIC Notification No. 10/2023-Central Tax dated May 10, 2023.
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
