Presently, E- Invoicing was mandatory for business with an annual turnover of over Rs 20 crore. In a notification issued on Monday, the Centre said it has amended the rule on the recommendations of the council. The Centre has made E-Invoicing mandatory for business with aggregate turnover exceeding Rs 10 crore from 1st October 2022 Experts assume that by next year i.e. from FY 23-24, business with turnover of Rs 5 crore will also be mandate to have e-invoicing. History 1. E-Invoicing was made mandatory for businesses having an annual turnover of Rs. 500 crore 2. It was reduced to Rs. 100 Crore 3. Further It was reduced to Rs. 20 Crore 4. With effect from 1st Oct, 2022 it will be mandatory for business having an annual turnover of Rs. 10 crore Why? 1. Tax authorities will be able to analyse the trends & use or misuse of input tax credit. 2. Plug in Revenue leakage. 3. To detect Fake ITC 4. To resolve mis-match errors and to check tax evasion.
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