{"id":6748,"date":"2020-12-14T07:57:41","date_gmt":"2020-12-14T07:57:41","guid":{"rendered":"https:\/\/kredx.com\/blog\/?p=6748"},"modified":"2023-10-26T05:52:04","modified_gmt":"2023-10-26T05:52:04","slug":"gst-e-invoicing-mandatory-for-msmes-from-1-october","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/gst-e-invoicing-mandatory-for-msmes-from-1-october\/","title":{"rendered":"GST E-Invoicing Mandatory For MSMEs From 1 October"},"content":{"rendered":"

An assortment of borrower-friendly schemes, assistance to MSMEs, and above all, digitalisation, has significantly contributed to India\u2019s business environment. As per the Ease of Doing Business Report 2020, India ranked 63<\/span>rd<\/span>, a stride forward by 14 places from 2019.\u00a0<\/span><\/p>\n

To further this trend, the 37<\/span>th<\/span> GST council has introduced a system of <\/span>e-invoicing<\/b> under GST for all MSMEs from 1 October 2020. The Central Government expects this move to streamline GSTR and e-way bill filing, and allow enhanced communication between businesses.\u00a0<\/span><\/p>\n

Although only MSMEs qualifying a specific criterion are mandated to follow this new regime, the Centre recommends all enterprises to follow this system of e-invoicing under GST.\u00a0<\/span><\/p>\n

What Is E-Invoicing Under GST?<\/b><\/h2>\n

E-invoicing under GST is not a way to generate invoices\/bills on the GST portal, as it may suggest. Rather, an <\/span>MSME<\/b> continues to generate bills as standard.\u00a0<\/span><\/p>\n

What changes is how you report invoices in GSTR-1 and Part A of e-way bills. Now, you will only need to submit prepared bills to the e-invoice portal. An Identification Reference Number or IRN will be generated against a bill.<\/span><\/p>\n

This way, the bill is authenticated, and all your invoice details are automatically transported to the e-way bill portal and GST portal in real-time. In other words, <\/span>GST e-invoicing<\/a> is basically a means to authenticate B2B bills.\u00a0<\/span><\/p>\n

Which MSMEs Need To Follow GST E-Invoicing?<\/b><\/h2>\n

All MSMEs with an annual turnover of Rs. 500 crores are obligated to authenticate their e-invoices via the GSTN portal.\u00a0<\/span><\/p>\n

If the aggregate turnover of all GSTINs registered under a PAN is equal to or higher than Rs. 500 crores, the same mandate applies to that entity as well.\u00a0<\/span><\/p>\n

The following entities are not required to submit e-invoices under GST \u2013\u00a0<\/span><\/p>\n