Presently, the process is mandatory for businesses with an annual turnover of Rs 20 cr and above
New Delhi, NFAPost: The government has widened the ambit of e-invoicing for businesses by lowering the mandatory turnover threshold to Rs 10 crore from Rs 20 crore under the Goods and Services Tax (GST) regime. The new threshold starts October 1.
The move is aimed at digitising a higher volume of transactions, transparency in sales reporting, reducing errors and mismatches, automating data entry work, and improving compliance.
Sources said the government will further extend it to entities with a turnover of Rs 5 crore, seeking to plug revenue leakage and ease compliance.
The Central Board of Indirect Taxes and Customs (CBIC) notified the rule late Monday amending the current threshold in line with the recommendations of the GST Council.
‘Business Standard’ reported on July 4 about the government’s plans to make GST e-invoicing mandatory for companies with a turnover of Rs 10 crore and then Rs 5 crore in the current financial year.
E-invoicing (electronic billing) started in October 2020 and was made mandatory for entities with a turnover of Rs 500 crore and above. This threshold was brought down to Rs 100 crore and later to Rs 50 crore in 2021 for business-to-business (B2B) transactions.
Taxpayers must generate invoices on their internal system or billing software and then report them to the invoice registration portal (IRP)–a requirement to get input tax credit (ITC).
