Reduced Limit of GST E-Invoicing

Updated on May 28, 2025 12:51:39 PM

GST E-Invoicing is the process of receiving, generating, and transmitting invoices using standardized data formats. It is not the generation of the invoice but the submission of the already generated invoice. In GST E-Invoicing unique number is generated. These numbers are matched with invoices written in sales returns and paid taxes.

Following GST E-Invoicing limits can be complicated. Any matter related to the GST E-Invoicing gets solved with Profesional Utilities.

GST E- Invoicing means taxes paid on input are deducted from tax paid on the output at the time of the paying taxes. It is established for all transactions at source and promotes digitization in India.

A GST E-Invoice can be generated at T+3 days for the information of e-invoices to auto-populate into GSTR-1, such taxpayers are encouraged to create an e-invoice on or after the invoice/CDN date, ideally a week before the submission of GSTR-1 returns.

There are certain condition under which taxpayer is eligible as mentioned below -

• Taxpayers with turnover exceeding 5 crores to 10 crores.
• Taxpayers who are engaged in export of the Goods and Services
• Input Service Distributor who on behalf of the registered person is engaged in the supply of goods and services.
• If they fulfill all other eligibility requirements, DTA units are required to submit an e-invoice applicability check under the GST applicability.
• Under the GST Regime, taxpayers are required to deduct tax at source (TDS).

In below mention ways GST E-Invoicing helps in curbing tax evasion -

• GST E-Invoice results in access to the transaction as the invoice is generated on the GST Portal.
• It reduces the chance of a fake invoice as all invoices are generated on the GST Portal. Fake tax credit claims can be tracked by the GSTN.
• Under the GST scope of the generating manipulating invoice reduce. As invoices are made before the transaction is carried out.

There are many benefits of the GST E- Invoicing like -

Curb tax evasion - Invoice can be manipulated lessen because of the generation of the invoices before the transaction is completed. Output tax detail and input tax credit are available. This results in ITCs that are claimed to be genuine and fake input credit and fake GST invoices can be tracked.

E-Way bills are easy to create -On the GST Portal E-Way bills are easy to generate which can be done when vehicle detail is updated.

Frauds are reduced -Frauds will reduce due to availability of the real-time data.

Compatibility is allowed -GST E- Invoices have standardized format which can be readable in different software.

QR code - The GST invoices are necessary to determine the ITC amount. An assessee can need extra copies of an invoice they already received or misplace an invoice they had received. The QR code will be quite beneficial in these circumstances. The assessee can create the invoice as many times as needed in PDF format by scanning this code.

Audit /survey are less -Information due to GST E-Invoicing is available at the transaction level there is less possibility of survey/audit.

Below mention registered persons are exempted from E-Invoicing irrespective of the turnover -

• Passenger Transportation services by the supplier.
• SEZ Units
• Local authority and government department
• Under Rule 14 of CGST Rules (OIDAR) person registered
• Financial institute or insurer or banking company including Non-Banking financial company.
• Transportation of goods by Road in goods carriage by goods transport agency.
• Admission to an exhibition of cinematograph films on multiplex screens by a supplier of services.

The steps involve in GST E-Invoicing are

• Invoices need to be generated in the standard format as defined by the government.
• For processing and validation, all GST E-Invoices are uploaded to the Government E-Invoicing systems.
• All details of the invoice are checked by the government.
• Then the invoice is sent to the buyer for payment.

Mandatory fields in GST E-Invoicing

GST E-Invoicing is planned to streamline and automate the process of the invoice for the business. It is the replacement for the traditional paper-based invoice. There are many benefits of GST E-Invoicing such as Curb tax evasion, E-Way bills being easy to create, Frauds being reduced, Compatibility allowed, etc.