Under the new e-invoicing rule, the latest GST update on 1st April 2022 added 18,000 GSTINs (GST Identification Numbers). It rose from 240,000 to about 420,000.
Compulsory e-invoicing of B2B (Business to Business) transactions for companies with a yearly turnover above ₹20 crores will increase GST registrations by 75%, a government official said speaking on the e-invoicing rule.
E-invoicing provides a real-time track of invoices generated by suppliers and lowers the scope of the fraud.
Before, 53,523 firms came under the GSTIN rule in October 2020. Later, 91583 more GSTINs were added by January 2021 and in April 2021 it went to 95461 more entries. The total number of GSTINs was 240,567 by the end of 2021. This number is forecasted to increase even more by the end of 2022. As before companies with ₹50 crore turnovers were only issuing e-invoicing. But now that the scale is reduced to ₹20 crore turnover will add more small and medium scale industries in the rule too.
The founder of a fintech company stated, “E-invoicing is the latest online leapfrog for Indian companies that have conducted online payments so well. It will also assist them to use digital transactions and will be a lead driver for their business growth.”