The government has clarified that e-invoice is not mandatory for taxpayers with an annual turnover of less than Rs. 50 crore.
The clarification was issued in response to queries from taxpayers regarding the applicability of e-invoice.
E-invoice is a system for generating invoices electronically and uploading them to the GST portal for authentication.
The system is aimed at reducing the compliance burden on taxpayers and improving the efficiency of the GST system.
E-invoice was made mandatory for taxpayers with an annual turnover of Rs. 500 crore or more from October 1, 2020.
The threshold for mandatory e-invoicing was later reduced to Rs. 100 crore from January 1, 2021.
The government has now clarified that e-invoice is not mandatory for taxpayers with an annual turnover of less than Rs. 50 crore, but they can still opt for it voluntarily.