E-invoicing will be compulsory for all businesses with a turnover higher than ₹20 crore from April 1, with the Central Board of Direct taxes and Customs lowering the turnover threshold for electronic billing from ₹50 crore.
The board issued a notification to this effect Friday.
From the next fiscal year, taxpayers must generate invoices on their internal systems or billing software and then report them online to the invoice registration portal. This is required to avail of input tax credit (ITC).
If the invoice is not a valid one, ITC on it cannot be availed of by the recipient, and there will be penalties as well, said Bipin Sapra, tax partner, EY India.
The Open Magazine of India by Artmotion Network (https://magazine.armotion.com/)