Who is eligible for an e-invoice in 2025?
Invoice Time Limit: From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of Rs. Invoice Registration Portal (IRP) within 30 days. It reduces the chances of fake GST invoices, allowing only genuine input tax credit claims. According to the newest change in 2025, businesses with AATOs of more than Rs. Invoice Registration Portal within 30 days from the date of issue of the document.All taxpayers are required to implement e-Invoice. Invoice will be implemented in phases according to annual turnover or revenue thresholds as stated in the statement of comprehensive income in the Financial Year 2022 Audited Financial Statements.Better visibility: E-invoicing platforms have real-time tracking and monitoring features. Businesses can easily see the status of each invoice, from creation to payment, providing greater visibility and control over the entire process.
Who is not eligible for an e-invoice?
Any supplier of a taxable service who is an insurer, banking company, financial institution, or Non-banking financial company is exempt from the applicability of e-invoicing. When the supplier is a goods transport agency providing services related to the transportation of goods by road in a goods carriage. As of now, any business with an aggregate turnover of ₹5 crore or more in any financial year since FY 2017-18 must generate e-invoices. It is called the e-invoice applicability limit. So if your business crossed ₹5 crore in turnover even once in the past few years, e-invoicing is mandatory for you now.E-invoicing is mandatory only if your annual turnover is RM1,000,000 or above. If your turnover is below RM1,000,000, you are permanently exempted. Freelancers and micro-businesses above this threshold must comply according to the phased rollout schedule.Two specific monetary penalties can be levied for e-invoicing non-compliance: Penalty for not generating an e-invoice: 100% of the tax amount or Rs 10,000 per invoice, whichever is higher. Penalty for incorrect e-invoicing particulars: flat Rs 25,000 per invoice.
Is e-invoicing mandatory?
Since e-Invoicing is not yet mandatory at the federal level, there are no formal exemptions in place. However, certain state-level requirements may apply to specific industries or types of transactions. Businesses that aren’t registered for GST don’t need to give regular (non-tax) invoices – but it’s good practice to give one. By law, you must still give customers a receipt if the goods or services were over $75 or they ask for one.Businesses registered under GST in India must issue a GST invoice for sales. A delivery challan is used instead if no sale occurs, but goods move. Non-registered entities or transactions exempt from GST can issue invoices without GST details.If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. GST credits for most business purchases you make.Yes, as e-invoicing is mandated for specified registered persons to other ‘registered persons’, both the GSTINs of supplier and recipient shall be active in GST System, as on the date of document being reported.
How much turnover is required for an e-invoice?
As of now, any business with an aggregate turnover of ₹5 crore or more in any financial year since FY 2017-18 must generate e-invoices. It is called the e-invoice applicability limit. So if your business crossed ₹5 crore in turnover even once in the past few years, e-invoicing is mandatory for you now. Penalty for failure to create an e-invoice: This penalty is applied if a company fails to generate an e-invoice for a taxable supply. The penalty is equal to either 100% of the tax owed on the supply or Rs.Monetary penalties Penalty for not generating an e-invoice: 100% of the tax amount or Rs 10,000 per invoice, whichever is higher.
What is the 30 day limit for e-invoice?
Highlights. The 30-day einvoice generation time limit requires invoices to be uploaded to the IRP within 30 days of the invoice date. The einvoice time limit latest notification now applies to businesses with AATO above ₹10 crore. Late e-invoice uploads result in rejected invoices, disrupting GST filings and ITC claims . Invoice Time Limit: From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of Rs. Invoice Registration Portal (IRP) within 30 days. It reduces the chances of fake GST invoices, allowing only genuine input tax credit claims.
How do I generate an e-invoice?
To generate e-invoices, businesses must integrate with an FTA-accredited ASP that supports structured digital invoicing. The e-invoicing system must: Support structured formats (XML, UBL, Peppol) for machine readability. Validate invoice data before transmission to ensure compliance. E-invoices are easier to track, store, and audit for increased efficiency and accuracy. Streamlined processing and payments reduce the time between invoice and settlement, leading to better supplier relationships.E-invoicing for small businesses provides a digital-first approach that eliminates manual processes, speeds up payments, and enhances compliance. This guide explores the advantages of e-invoicing, its impact on small business efficiency, and how it compares to traditional invoicing.