GST e-invoicing must for businesses with turnover of Rs 5 crore or more

Businesses with a turnover of Rs 5 crore and above are obligated to generate e-invoicing for business-to-business (B2B) transactions with effect from August 1. Presently, e-invoice is compulsory for companies with a turnover of Rs 10 crore or above.

The Ministry of Finance late on Wednesday notified a new mandate lowering the threshold for e-invoicing.

“Effective from August 1, any taxpayer with a turnover exceeding Rs 5 crore should raise an e-invoice for B2B supplies,” read the notification.

The move is aimed at digitising higher volumes of transactions, greater transparency in sales reporting, minimising errors and mismatches, automating data entry work, and improving compliance.