E-INVOICE IS MANDOTARY OR NOT FOR SELLING EXEMPTED GOODS.

 As per the Central Board of Indirect Taxes and Customs (CBIC) notification, e-invoicing is mandatory for businesses with an aggregate turnover exceeding ₹10 crores in a financial year, starting from 1st October 2022.

However, there's an exemption for certain categories of suppliers, including those who: - Supply exempted goods or services - Supply goods or services attracting nil rate of tax In your case: - The taxpayer has a turnover exceeding ₹40 crores. -

 They sell 99% exempted items and 1% taxable items. For the exempted goods (99% of total sales), e-invoicing is not mandatory.

However, for the taxable goods (1% of total sales), e-invoicing is mandatory since the aggregate turnover exceeds ₹10 crores. To summarize: -

E-invoicing is not mandatory for exempted goods (99% of total sales). -

E-invoicing is mandatory for taxable goods (1% of total sales).