CBIC: No Proposal to Lower the e-Invoicing Threshold from Rs 10 Crore

Central Board of Indirect Taxes and Customs (CBIC) clarified that there is no proposal to lower the e-invoicing threshold from 1st January 2023. At present, businesses with more than Rs 10 crore turnover are required to generate e-invoices for Business-to-Business (B2B) transactions.

CBIC tweet says, “There is no proposal to reduce the e-invoicing threshold limit to Rs 5 crore from 1st January 2023. Also, Council did not make any such recommendation.”

CBIC issued clarification through a tweet amid media reports stating that the Goods and Services Tax (GST) Council has recommended reducing the threshold to Rs 5 crore for generating e-invoices from 1st January 2023. Also, it clarified that the government is yet to issue a notification on this matter.

Under the GST law, e-invoicing is mandated for B2B transactions phase-wise. The first phase covered businesses with more than Rs 500 crore turnover from 1st October 2020, which was later extended to businesses with more than Rs 100 crore turnover from 1st January 2021 in the second phase.

Also, the e-invoicing threshold has been reduced to Rs 50 crore under the third phase from 1st April 2021 and then further brought down to Rs 20 crore beginning 1st April 2022 under the fourth phase. Lastly, the fifth phase of e-invoicing was implemented from 1st October 2022 to businesses with more than Rs 10 crore turnover.

The business shall comply with e-invoicing in FY 2022-23 if turnover exceeds the specified limit in any financial year from 2017-18 to 2021-22. Also, they should consider the aggregate turnover while checking the e-invoicing applicability, which includes the turnover of all GSTINs under a single PAN across India.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in

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