E invoices for ecommerce trade

The short answer is no, it is not mandatory for all e-commerce sellers to generate e-invoices, but it depends on your business's annual turnover.

In India, e-invoicing is governed by the Goods and Services Tax (GST) laws. Here is the breakdown of how the rules apply to your situation:

1. Who must generate e-invoices?

E-invoicing is mandatory only for businesses whose Aggregate Annual Turnover (AATO) has exceeded ₹5 crore in any preceding financial year (from 2017-18 onwards).

• If your turnover is above ₹5 crore: You are required to generate e-invoices for your B2B (Business-to-Business) transactions and exports.

• If your turnover is below ₹5 crore: You are currently exempt from the mandatory e-invoicing requirement, even if you sell through an e-commerce operator.

2. Does the E-commerce Operator (ECO) generate it for you?

It is important to distinguish between your legal obligation and the technical convenience provided by platforms:

• Legal Responsibility: As the seller, the responsibility for complying with GST rules (including e-invoicing if you meet the threshold) rests with you.

• Platform Assistance: Some e-commerce platforms offer features to help you generate invoices. However, if you are above the ₹5 crore threshold, you must ensure that your invoicing process is compliant with the IRP (Invoice Registration Portal) requirements. If a platform generates an invoice "on your behalf," ensure it carries the required Invoice Reference Number (IRN) and QR code, as mandated by the government for notified taxpayers.

3. Summary of Compliance for E-commerce Sellers

Even if you are not required to generate "e-invoices," you are still subject to standard GST compliance:

• Mandatory GST Registration: Regardless of your turnover, you must register for GST if you sell through an e-commerce operator (under Section 24(ix) of the CGST Act).

• Tax Invoices: You must issue valid, serially numbered GST-compliant tax invoices for your supplies, even if you aren't required to generate an e-invoice (IRN).

• TCS: Remember that e-commerce operators will continue to deduct Tax Collected at Source (TCS) on your supplies, which you can claim as credit while filing your GSTR-3B.

Recommendation:

If your turnover is approaching or has crossed the ₹5 crore threshold, you should consult with your tax advisor to set up your accounting system (like Tally, SAP, or other ERPs) to integrate with the Invoice Registration Portal (IRP) to ensure you are compliant. If you are well below this limit, you do not need to worry about generating IRNs for your invoices.

Summary: You only need to generate e-invoices (with an IRN and QR code) if your annual aggregate turnover exceeds ₹5 crore. If your turnover is below this limit, you remain exempt from this requirement, though you must continue to issue regular, GST-compliant tax invoices for all your sales.