GST e-Invoicing threshold limit reduced to Rs 5 Crores

The CBIC vide Notification No. 10/2023 dated 10/05/2023 has notified the reduction in the applicability of e-invoicing threshold limit from Rs.10 Crores to Rs.5 Crores with effect from 1st August, 2023. 

It may be pertinent to note that the taxpayers needs to comply with e-invoicing if the turnover exceeds the specified limit in any financial year from 2017-18 onwards. In simple words, taxpayer having aggregate turnover exceeding Rs. 5 Crores in any FY 2017-18 onwards has to issue e-Invoice from 1st August, 2023.

An e-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number is issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network (GSTN).

Presently, CBIC vide Notification No. 17/2022-Central Tax dated 01/08/2022 had amended the Goods and Service Tax (GST) e-invoicing applicability if the turnover is more than 10 crores w.e.f. 01/10/2022.

Phase-wise applicability of e-Invoicing:

  Report