GST Network (GSTN) has introduced e-invoicing for taxpayers with an Annual Aggregate Turnover (AATO) ranging from ₹5 crore to ₹10 crore, allowing them to prepare for the new system in advance. Starting from August 1, businesses with a turnover of ₹5 crore or more will be required to adopt e-invoicing, whereas the current threshold is ₹10 crore. According to Rule 48(4) of CGST Rules, certain registered persons must upload specified particulars on the Invoice Registration Portal (IRP) to obtain an Invoice Reference Number (IRN), resulting in an e-invoice with a QR code.

 It's crucial to note that unregistered e-invoices will be invalid and recipients won't be able to claim input tax credit or may face penalties. Experts believe that e-invoicing will benefit small taxpayers, and they recommend timely configuration and integration of accounting systems with the government's e-invoice portal using tax technology tools. Gunjan Prabhakaran, a partner at BDO India, views e-invoicing as a significant step towards tax automation, reducing the burden of manual GST compliance tasks.

Taxpayers affected by e-invoicing starting from August 1, 2023, should seize this opportunity to review and automate their GST compliances. The integration of e-invoicing enables auto-reporting of invoice details in supplier's GSTR-1 and recipient's GSTR-2A, as well as the automatic generation of e-way bills. While e-invoices cannot be amended, they can be canceled within 24 hours of reporting or generation. It is advised to establish a Standard Operating Procedure (SOP) and provide adequate training to system users to avoid inadvertent errors in capturing details and issuing e-invoices, according to Prateek Bansal, a Tax Partner at White and Brief – Advocates & Solicitors.