Govt notifies e-invoicing for companies with Rs 500-crore turnover

The government has notified an e-invoicing system under the goods and services tax (GST) regime which makes it mandatory for large businesses with turnover of over Rs 500 crore to submit sales invoices electronically.

The notification comes as a relief for small businesses as the turnover threshold has been hiked from the earlier proposed Rs 100 crore and above for mandatory e-invoicing. The system is expected to be rolled out from October 1, leaving barely a couple of months for businesses to modify their systems.

Units in special economic zones have been exempt from complying with e-invoicing, according to the notification released on July 30. The move comes as the government is looking at ways to plug evasion amid dismal GST collections with the pandemic driving economy towards recession.