GST e-invoicing turnover threshold lowered to Rs10 crore from October 1st

2 Aug 2022 , 01:57 PM

By decreasing the required turnover level under the Goods and Services Tax (GST) regime from Rs20 crore to Rs10 crore, the government has expanded the scope of electronic invoicing for enterprises. October 1 marks the start of the new threshold.

The change aims to digitize a larger number of transactions, increase sales reporting transparency, lessen mistakes and mismatches, automate data input labor, and boost compliance.

According to sources, the government would also extend it to companies with an Rs5 crore annual income in an effort to stop tax leakage and simplify compliance. In accordance with the GST Council’s recommendations, the Central Board of Indirect Taxes and Customs (CBIC) issued the regulation late on Monday. It modifies the present threshold.

The government intends to make GST e-invoicing mandatory for businesses with a turnover of Rs10 crore and then Rs5 crore in the current financial year. ” E-invoicing (also known as electronic billing) became mandatory for businesses with a revenue of at least Rs500 crore in October 2020. In 2021, this barrier was lowered to Rs100 crores for business-to-business (B2B) transactions, and then to Rs50 crore.

In order to be eligible for the input tax credit, taxpayers must produce invoices using their internal system or billing software and then submit them to the invoice registration site (IRP) (ITC).