From April 1, E-Invoicing Mandatory For Firms With A Turnover Of ₹20 Cr+

From April 1, businesses with a turnover of more than Rs 20 crore must generate E-Invoices for B2B transactions, according to the Central Board of Indirect Taxes and Customs. 

E-invoicing for business-to-business (B2B) transactions became essential under GST law on October 1, 2020, for companies with a turnover of over Rs 500 crore, and on January 1, 2021, for companies with a turnover of over Rs 100 crore.

Moreover, companies with a turnover of more than Rs 50 crore have been generating B2B e-invoices since April 1, 2021. Companies having a turnover of more than Rs 20 crore are now eligible.

With effect from April 1, 2022, additional vendors will be required to issue e-invoices. If the invoice is not genuine, the recipient will not be able to claim the input tax credit and will be subject to penalties.

The government has expanded the use of compliance automation to a bigger group of taxpayers, which will not only make compliance easier but will also help to plug income leakages caused by input tax credit fraud.

Who should Adhere To The E-Invoicing & Roadmap Notified Policies?

To avoid GST tax evasion, the government implemented E-invoicing. In May 2019, the first Committee was formed to discuss the usability of e-invoicing and its deployment strategy in India, taking into account global implementations. Several drafts have been released since then, with the e-invoice schema being implemented in January 2020. E-invoicing was meant to be necessary by April 1, 2020, but the GST Council moved it back, and it finally went live on October 1, 2020, in a gradual way.

From October 1, 2020, enterprises with a turnover of more than Rs.500 crore were required to issue e-invoices in the first phase. Companies with a turnover of more than Rs.100 crore were required to issue e-invoices from January 1, 2021, in the second phase. From April 1, 2021, enterprises with a turnover of more than Rs.50 crore must issue e-invoices in the third phase.

What Influence Or Changes Will E-Invoicing Have On Corporate Processes?

Businesses must now interface their systems with the government’s invoice registration portal in order to generate an Invoice Reference Number (IRN) for every B2B invoice in a seamless manner. In order to comply with the e-invoice format, they will need to make adjustments to their accounting software. 

The following are the effects of creating e-invoices on company processes:

  • The company must now identify transactions that may be subject to e-invoicing and categorize them for compliance.
  • To include additional information for invoices such as bank credentials and payee details, businesses will need to maintain a vendor and customer master.
  • Since B2B supplies can be auto-populated in returns whereas B2C supplies must be manually updated, businesses will need to make adjustments to their GST return preparation process.
  • Businesses must choose whether to comply with e-invoicing via API integration, offline utilities such as GePP, or GSP integration (GST Suvidha Provider).
  • The most difficult problem that enterprises will face is ensuring that IRNs are generated and captured on a constant basis. In a single day, large retailers create hundreds of B2B invoices. Customers cannot be forced to wait until the e-invoice is generated. For a flawless deployment, such organizations should use GSP’s services.

What Happens If You Don’t Get An E-Invoice?

Non-generation of an e-invoice is a crime that carries a penalty. It is punishable by a fine of up to Rs.10,000 per invoice. In addition, erroneous billing might result in Rs.25,000 penalty for each invoice.

If a taxpayer misses the deadline for generating an e-invoice, he or she will face penalties.

  • His GST returns will not be automatically filled out.
  • His consumers will be unable to claim ITC that has been validated.
  • Customers may refuse to accept invoices that do not follow e-invoicing guidelines.

Guidelines from the National Informatics Centre (NIC) issued March 16, 2021

For taxpayers with a turnover of more than Rs.50 crore, the NIC has given the following guidelines:

  • The GSTINs given are eligible for e-invoicing, and registration and login are available.
  • Prepare to register real invoices as a taxpayer. He can also download bulk e-invoice software for generating JSON and IRN.
  • The taxpayer’s IRNs can be used to generate e-way bills, and he can also register for e-invoice APIs.

Additionally, This post will teach you how to file an ITR as a freelancer.

Why Choose Refrens Invoice Generator To Create GST E-Invoices?


Refrens Free Online Invoice Generator is a cutting-edge business solution that enables you to produce and send professional-looking online invoices to your customers in just three easy steps. You may customize invoices with our Free Invoice Maker by adding items like logos, digital signatures, files, and other attachments. Even if you’re new to invoicing, you can produce GST invoices with only one click.

Refrens not only supports GST but also numerous currencies and over 200 countries. You can change the currency on your invoice with just one click if you have a business with an international clientele. With Invoice Generator Online, you can also include your bank account information or payment links to ensure that you are paid on time.

Take a look at our in-depth guide about GST E-Invoicing.

Our customized and user-friendly invoice production interface makes it simple to manage, track, and save endless invoices online. Create, download, and distribute an unlimited number of online invoices for free using our online invoice generator, and preserve all-important details for recurring bills to save time.

You may manage your customer list in one location and add that client immediately to your portfolio with just one click, in addition to creating invoices. You can add and manage an unlimited number of clients, just like invoices. Client reports are generated automatically as you add more clients and create invoices for them, allowing you to manage and view invoices for each client.

The client report may quickly provide information such as the number of invoices created for each client, the total amount, the due amount, the TDS deducted, the total GST, and even the average paying date.

Also, take a look at our tax advice for freelancers.

Begin producing Beautifully Designed Unlimited Online Invoices for Free with Refrens Invoice Generator right now!