e-Invoicing Mandate for firms with an annual turnover above Rs. 5 Cr
Category: GST, Posted on: 11/10/2022 , Posted By: Webtel
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In an event organized by the industry body PHDCCI, Central Board of Indirect Taxes Chairman Vivek Johri stated "We started with a very high threshold and soon we are going to have all taxpayers with an annual turnover of more than ₹5 cores having to generate e-invoices for their B2B part of the business. With the launch of e-invoice, we don't need invoice matching,”

Initially, CBIC introduced ₹500 Cr e-invoicing mandate starting October 1, 2020, which was lowered down to ₹100 Cr on January 1, 2021. This limit was further brought down to ₹50 Cr on April 1, 2021, followed by the ₹20 Cr e-invoicing mandate on April 1, 2022. From the onset of October 1, 2022, e-invoicing has been made mandatory for all businesses with an annual turnover exceeding ₹10 Cr. The question is,

Will 2023 bring a new threshold limit of ₹5 Cr for e-invoicing in India?

After the successful implementation of e-invoicing for businesses with an annual turnover above ₹10 Cr on October 1, 2022, the government is planning to expand the scope of e-invoicing in India and elaborate on the roots of e-invoicing for businesses with an annual turnover above ₹5 Cr from January 1, 2023.

The ₹5 Cr e-invoicing limit bracket will cover a large proportion of relatively small taxpayers who are still reliant on conventional accounts keeping methods and lack the proper resources for relevant e-invoice implementation or data maintenance. Hence it becomes important for these organizations to start preparing for the upcoming changes related to the ₹5 Cr e-invoicing mandate at the earliest and strengthen the scope of the management of their account for hassle-free compliance with e-invoice generation.

How can businesses prepare themselves for ₹5 Cr e-invoicing mandate?

To prepare oneself for the possible changes in e-invoicing limit, it is important for organizations to schematically follow the given steps and set the foundations for e-invoicing implementation in their organization.

  1. Understanding the e-invoicing requirements and the pre-conditions
  2. The first step in preparing your business for the ₹5 Cr e-invoicing is to understand the requirements, conditions, and applicability of e-invoicing. Organizations need to evaluate and align these requirements under e-invoicing with the ERP in use. To fully prepare your business for the potential e-invoicing changes, the current ERP must fulfill the e-invoicing requirements, as given under the e-invoicing schema.

  3. Keeping up with the updates, amendments, and notifications related to ₹5 Cr e-invoicing
  4. The new notifications and guidelines can go live at any point in time. It is in the best interest of the organizations to check for updates and keep up with the CBIC notifications related to ₹5 Cr e-invoicing regularly and line up the ERP system following these changes.

  5. Prepare your business and staff for the ₹5 Cr e-invoicing changes
  6. Before setting in the e-invoicing systems into your business processes, it is undeniably important to prepare those who will be managing the ERP systems. Conducting training sessions for staff and preparing them for the implementation of e-invoicing will go a long way in facilitating accuracy and smooth workflow post-implementation of ₹5 Cr e-invoicing.

Know more about e-Invoicing applicability, requirements, and guidelines: Complete Guide for e-Invoicing in India

How can you prepare your business for the ₹5 Cr e-invoicing limit?

As we discussed in the previous section about e-invoicing preparation, the role of a good ERP system that supports the e-invoicing requirements is exigent. The right e-invoicing solution will perfectly align with your business requirements and help you in staying updated with the ongoing and upcoming changes.
The question is, where to find the e-invoicing solution that complies with all the changes and meets all your business requirements?
The e-invoicing solution by Webtel is the best e-invoicing ERP for your business. With Webtel’s fastest e-invoicing solution, you can prepare your business for e-invoicing in just 7 days. Webtel offers a range of features that fit right with all your business requirements.

  1. Seamless Integration: Enjoy seamless integration of any ERP using Webtel’s complete ASP-GSP solution.
  2. IRN Generation: Webtel’s e-invoicing solution facilitates bulk upload and bulk generation of IRN in a fast and hassle-free manner.
  3. Data Validation: Webtel’s e-invoicing solution offers multiple data validations to ensure 100% compliance.
  4. Fast Implementation: Get e-invoicing ready in 7-day with Webtel’s fastest integration.
  5. Data Security: Ensure 100% data security and real-time monitoring with Webtel’s desktop-based solution

Know more about Webtel’s e-Invoicing Solution

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