E - Invoicing

[Kaustubh Karandikar]

XYZ (Proprietory Concern) owning sweet shops and having more than ₹ 100 Crore turnover in a financial year. Most of their supplies are to B To C and very few i.e. 5 to 10 transactions in a month are to B To B. Are they required to start e – invoicing from 01.01.2021 for B To B supplies only or for all the transactions i.e. B To C as well as B to B or since B To B is very negligible, they need not follow e – invoicing system?

AI Summary

E-invoicing Mandatory for B2B Transactions Only, Not Required for B2C, Clarifies GST Compliance for Proprietorships A proprietorship with over 100 crore turnover, primarily conducting B2C transactions, inquired about the necessity of implementing e-invoicing from January 1, 2021. The responses clarified that e-invoicing is mandatory only for B2B transactions, where both parties are registered under the GST Act. It is not required for B2C transactions, as these involve unregistered recipients. The experts agreed that e-invoicing applies when the recipient is a registered business entity.