GST e-Invoicing is Now Mandatory for Businesses Above Rs 5 Crore

On and from 1st August 2023, a new mandate has been put in place by the GOI, making GST e-invoicing essential for all registered persons whose aggregate turnover (based on PAN) in any prior fiscal year from 2017-18 onwards exceeds 5 crores. 

The Central Board of Indirect Taxes and Customs (CBIC) has taken a significant step by making GST e-invoicing compulsory through Notification No. 10/2023/. This move aims to enhance efficiency and transparency in business transactions.

With the new mandate, businesses must embrace e-invoicing to stay compliant and enjoy streamlined invoicing processes. 

Benefits of GST E-Invoicing: 

  • Standardization: E-invoicing promotes uniformity and consistency in invoice formats, ensuring clear communication between buyers and sellers.
  • Automatic Notification: The e-invoicing system generates automatic notifications, providing real-time updates to all stakeholders regarding invoice status and payment due dates.
  • Removal of False Invoices: E-invoicing eliminates the possibility of fake or duplicate invoices, enhancing the credibility of transactions.
  • Decreased Errors: With automated processes, the likelihood of manual errors in invoice creation and data entry is significantly reduced.
  • Improved Payment Collections: E-invoicing expedites payment processes, leading to faster and more reliable collections for businesses.
  • Increased Invoice Discounts: Prompt payments facilitated by e-invoicing can lead to better negotiation opportunities and increased invoice discounts.
  • Boost Overall Effectiveness: By streamlining invoicing procedures, businesses can enhance their overall operational efficiency.

Penalties for Non-Compliance: 

Failure to generate e-invoices or incorrect issuance of e-invoices can result in severe penalties. The penalty for each erroneous invoice includes 100% of the tax owed or Rs. 10,000, whichever is higher. Additionally, a fine of Rs. 25,000 per invoice may be imposed for inappropriate invoicing. 

Embracing Hylobiz for Secure GST E-Invoicing: 

Hylobiz, a trusted B2B fintech platform, offers efficient electronic invoicing solutions to businesses. In addition to electronic invoicing, Hylobiz automates the collection, payouts, payment reminders, and credit criteria, promoting SME business growth. 

Benefits of Generating GST e-Invoices with Hylobiz:

  • Seamless ERP and account integration: Easily link your existing ERP and your bank account with Hylobiz for seamless invoicing, collections and cashflow automation.  
  • Generate GST e-invoices/invoices and e-way bills: Hylobiz allows for rapid invoice uploads from the existing ERP system and turns them into e-invoices. You can also generate an einvoice in quick steps. Generate e-way bills from existing e-invoices with pre-filled data. 
  • Collect payments on time: Hylobiz enables sending payment links in single or bulk through multiple channels, along with automated reminders for seamless collections.
  • Digital and Automatic Reconciliation: No more tedious reconciliation, you can access automated reconciliation reports in real time 
  • 24/7 Support: Hylobiz offers round-the-clock technical support to assist businesses at any time. 
  • Zero Downtime: Hylobiz ensures continuous availability, allowing businesses to make e-invoices at any time. 

Future of GST E-Invoicing: 

The government is continuously working to enhance the GST e-invoicing system further. In the future, e-invoicing may become mandatory for B2B and export transactions, with the exception of those under the composition scheme. 

With the new e-invoicing mandate effective from 1st August 2023, businesses must embrace digital transformation to remain compliant and efficient in their operations.

Hylobiz offers a comprehensive solution that simplify invoice management, ensures data security, and increases business efficiency, enabling businesses to thrive in the evolving business landscape.

Embrace e-invoicing today and unlock a new era of seamless transactions for your enterprise. 

An update!  

We will be launching soon- VICCAS- The Next Gen unified digital platform for B2B business!”   

The platform will provide you with stronger control over cash flow and compliance and much easier access to credit and working capital services.”

With VICCAS (Vayana’s Integrated Cashflow Credit and Analytical Solution), say goodbye to those pesky financial and compliance constraints that hold you back and get ready to unlock the full potential of your business!

Get ready for the highly anticipated VICCAS reveal, and in the meantime, feel free to contact us without any hesitation. 

Book a demo today:

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Frequently Asked Question

What is the time limit for GST e-Invoicing?

According to the recent advisory, The time limit to generate e-invoices is seven days from the date given in the invoice.
All taxpayer businesses with an Annual Aggregate Turnover (AATO) of Rs.100 crore or more must comply with the time limit defined by the GSTN.
After 7 days there will be no option to upload and generate an e-invoice on the IRP. Validations built into the IRP will prevent the user from reporting such invoices after 7 days.

How do I create an electronic invoice?

These are the steps to follow while creating an e-invoice:
1. Invoice Creation: create an invoice using accounting or billing software like Hylobiz to stay compliant with regulations.
2. Invoice Registration Number (IRN) Generation: The supplier can generate a unique Invoice Reference Number (IRN).
3. Upload on Invoice Registration Portal (IRP): Upload invoice along with the IRN.
4. IRP Validation of Invoice: The IRP will validate the details attached and generate an IRN with a unique identity for the entire financial year.
5. Digital Signature and QR Code Generation: After successful verification, the invoice will be updated with IRP’s digital signature and a QR code will be added
6. E-Invoice data transmission to E-Way Bill Portal and GST System: The uploaded data will be shared with the E-way bill and GST system.
7. E-Invoice Receipt back to Supplier’s ERP: The portal will send the digitally signed file along with IRN and QR code back to the seller.

What are the mandatory fields for e-invoice under GST?

Here are the mandatory fields for e-invoicing:
– Invoice Reference Number (IRN)
– Code for Supply type
– Code for Document type
– Document Number
– Document Date
– Supplier Information
– Buyer Information
– Invoice Item Details
– Total Amount in INR
– E-way bill details
– Shipping to
– Dispatch from details
– Total taxable value of the invoice
– Batch Number/ Name

What is the prerequisite to generate e-invoicing?

Prerequisites to generate e-invoicing typically include a registered business, access to compliant invoicing software, accurate transaction information and most important of all the person generating an e-invoice should be registered on the GST portal and e-invoice or e-way bill portal. Verify technical requirements, such as digital signatures or specific data formats, if needed.
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