The Central Board of Indirect Taxes and Customs (CBIC) on August 1 notified lowering the e-invoice threshold to ₹ 10 crore and above from October 1.
New Delhi:
GST registered businesses with annual turnover of ₹ 10 crore or more will have to generate e-invoices for B2B transactions from October 1, the finance ministry said.
Currently, businesses with turnover of ₹ 20 crore and above are required to generate electronic invoice for all B2B transactions.
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The Central Board of Indirect Taxes and Customs (CBIC) on August 1 notified lowering the e-invoice threshold to ₹ 10 crore and above from October 1. The GST Council, comprising finance ministers of Centre and states, had decided to implement electronic invoice in a phased manner.
Under Goods and Services Tax (GST) law, e-invoicing for business-to-business (B2B) transactions was made mandatory for companies with turnover of over ₹ 500 crore from October 1, 2020, which was then extended to those with turnover of over ₹ 100 crore effective January 1, 2021.
From April 1, 2021, companies with turnover of over ₹ 50 crore were generating B2B e-invoices, and the threshold was brought down to ₹ 20 crore beginning April 1, 2022.
Going forward, The CBIC plans to further lower the threshold for e-invoice generation to ₹ 5 crore.
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Deloitte India Partner MS Mani said this will further expand the GST tax base and provide more data to the tax authorities enabling better compliance.MS
“The progressive reduction of the e-invoicing threshold indicates that, over a period of time, e-invoicing will become mandatory for all categories of GST taxpayers,” Mr Mani added.
