CBIC notifies GST e-invoicing for businesses

The Central Board of Indirect Taxes and Customs (CBIC) has notified e-invoicing for businesses with turnover above Rs 500 crore, increasing the threshold for mandatory issuing of electronic invoices from the earlier limit of Rs 100 crore turnover, providing relief to small scale companies.

The Government empowered under Rule 48(4) of the Central Goods and Services Tax Rules, 2017, on the recommendations of the Council, amended the Notification No.13/2020-Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 196(E), dated the 21st March, 2020.

In the said notification, in the first paragraph, before the words “those referred to in sub-rules”, the words “a Special Economic Zone unit and” shall be inserted. Further, for the words “one hundred crore rupees”, the words “five hundred crore rupees” shall be substituted.
 

The Notification said that “an invoice issued by a registered person, whose aggregate turnover in a financial year exceeds five hundred crore rupees, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of said rules, and registered person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017, to an unregistered person (hereinafter referred to as B2C invoice), shall have Dynamic Quick Response (QR) code: Provided that where such registered person makes a Dynamic Quick Response (QR) code available to the recipient through a digital display, such B2C invoice issued by such registered person containing cross-reference of the payment using a Dynamic Quick Response (QR) code, shall be deemed to be having Quick Response (QR) code.”

The GST authorities planned e-invoicing only for business to business transactions. The higher threshold will enable large corporations to go ahead with adopting this system, while giving more time to smaller ones.

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