2 August 2022
Notification No. 17/2022 – Central Tax dated 1 August 2022
Effective from 1 October 2022, every registered person whose aggregate turnover in any previous FY (starting from FY 2017-18) exceeds INR 100 million (previously it was INR 200 million), then such registered person would be required to generate IRN/QR Code, i.e., issue e-invoice and have it printed on the tax invoices, debit/credit notes issued in respect of B2B supplies including zero-rated supplies.

Few categories of persons would be out of the ambit of this compliance, such as government departments, local authorities, SEZ units, Goods Transport Agency, banking, and non-banking institutions, insurer, and admission to cinematograph films.
   
Our Comments
  • Instigating with the threshold of INR 5 billion to widening the limit to cover a registered person with INR 100 million, clearly indicates a gradual movement of the government towards full digitization to carve out the revenue leakages and to ensure compliance ease for the registered person.
  • The small businesses will have to integrate their billing/accounting system with the e-invoice portal to comply with the recent changes.
  • The compliance will also be important from the business point of view as default might impact ITC availability in the hands of customers.
  • Going at the pace at which e-invoicing is being made applicable, it will not be a surprise if such provisions are made applicable to all the registered persons sooner or later.
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