eInvoice has become an essential part of compliance requirements for GST in India. Several revisions have been made to the compliance criteria concerning the adoption of e-invoicing. According to the most recent amendment in August 2023, businesses registered under the GST Act, with a total turnover surpassing Rs. 5 crores, must now generate e-invoices. Previously, this threshold stood at Rs. 20 crores. The adjustment aligns with the government's initiative to promote digitalization in India.

Are you also a business owner and curious to know how to check eInvoice applicability?

If yes, you are at the right place. Our blog post explains the steps of checking eInvoice applicability under the GST.

Steps to Follow to Know eInvoicing Applicability

Determining whether e-invoicing applies to your business can be done through several methods, depending on your specific situation. Follow the steps given below:

Check Your Aggregate Turnover

• One key factor in determining e-invoicing applicability is your aggregate turnover in the previous financial years (2017-18 to 2021-22).
• If your turnover in any of these years exceeds Rs. 20 crores, you are required to generate e-invoices.
• From 1st August 2023, this threshold reduced to Rs. 5 crores for businesses registered in India.
• You can find your aggregate turnover details through the GST portal or by consulting your chartered accountant.

Check Your GSTIN Status:

The next step is to check if your GSTIN is enabled for e-invoicing. For this:

• Visit the e-invoice portal at https://einvoice1.gst.gov.in/Others/EinvEnabled.
• Enter your GSTIN number and tab on "click"
• The portal will display the status of your e-invoicing enablement.

Check If You Fall Under Any Exemptions

Some specific categories of businesses are exempt from e-invoicing, even if their turnover exceeds the threshold.

These exemptions typically include businesses involved in specific goods or services, such as financial services, insurance, and travel agencies. You can get a detailed list of exempted categories on the GST portal or consult a tax professional.

Use Online Resources

The GST portal provides various resources and FAQs on e-invoicing applicability. You can also get helpful information and tools on the NIC e-invoice portal (https://einvoice1.gst.gov.in/

Seek Professional Advice:

If you have any doubts about your e-invoicing applicability, it's always advisable to consult a tax professional or chartered accountant. They can help you interpret the regulations and guide you on compliance requirements.

By following these steps and utilizing available resources, you can determine whether e-invoicing applies to your business and take necessary actions to comply with the regulations.

In the End

To be compliant with the provisions and rules of the GST Act, it's vital to get an understanding of it. eInvoice Registration under GST can seem to be a complex process. But by taking these simple steps you can gain clarity and ensure compliance. Also, you can consult with tax professionals, they can provide valuable insights. Timely understanding and action will make this transition smooth and ensure you are compliant with the evolving digital landscape of invoicing.