How to Check e-Invoicing Eligibility of a Business?

The e-invoice initiative has changed the way businesses interact with each other. Initially, it applied to entities with an annual aggregate turnover of more than Rs 500 crore. Now, it extends to those with over Rs 100 crore as annual turnover since 1st January 2021. The taxpayers have to check whether they have to implement e-invoicing. They can easily find out the same by checking e-invoicing eligibility on the ClearTax portal.

The article covers the following:

1. Need and importance of checking e-invoicing eligibility

Nowadays, it is crucial to comply with the GST law for doing a business. E-invoicing is one of the essential compliances under GST, and the taxpayer has to check the status of e-invoice eligibility to comply with it accordingly.

Usually, the notified taxpayers who must comply with e-invoicing have to issue an e-invoice containing valid Invoice Reference Number (IRN). However, if they do not issue an e-invoice, it will be considered as an invalid invoice. Also, the recipient will not be in a position to claim the tax paid for that invoice as Input Tax Credit (ITC).

Hence, when you look at it from the ITC perspective, it is important to check your supplier’s e-invoicing eligibility, even though e-invoicing does not apply to you. An invalid invoice can break the entire ITC chain. Hence, it is very important to know whether you are receiving a valid invoice or not.

2. How to check e-invoicing eligibility?

Type, in your browser, and then follow the below steps:

Step 1: Enter the GSTIN, email, phone number, captcha text and then click on “Check”.

Step 2: The following details will be displayed on the screen:

  • Company name
  • Taxpayer type
  • E-invoice status

3. Advantages of checking e-invoicing eligibility?

  • You can check the status of e-invoicing eligibility with ease in three simple steps.
  • You have to submit minimal details to check the e-invoicing eligibility status.
  • You can get the authentic status of your e-invoice eligibility status as updated time-to-time on the NIC portal.
  • You can also check the e-invoice eligibility status of your suppliers.