E-Invoicing To Be Mandatory For GST-Registered Firms With Rs 5 Crore Turnover From August 1

The Central Board of Indirect Taxes and Customs on Friday said that the measure aims to "standardize invoices" and "reduced compliance burden".

Ministry of Finance reduced the threshold for GST E-Invoicing from Rs 10 crore to Rs 5 crore via a notification in May.

Source : Getty

Businesses with an aggregate turnover of Rs 5 crore or more will be required to mandatorily opt for e-invoicing starting August 1 under the Goods and Services Tax (GST). The Central Board of Indirect Taxes and Customs on Friday said that the measure aims to "standardize invoices" and "reduced compliance burden".

“GST taxpayers whose aggregate turnover exceeds Rs 5 crore in any financial year ... Generating e-invoices for both supply of goods or services or both, or for exports will be mandatory from August 1,” the CBIC tweeted.

Important update!

GST taxpayers with an Annual Turnover exceeding Rs 5 Cr need to generate e-Invoices for B2B supply of Goods or Services or both, or for exports, starting 01 August, 2023.

Benefits of e-Invoicing:

👉 Standardized invoices

👉 Reduced compliance burden pic.twitter.com/XUJLbsYR6l

— Central Bureau of Communication (CBC) (@CBC_MIB) July 29, 2023

Initially set at Rs 10 crore, the threshold for mandatory e-invoicing registration is being gradually reduced by the tax department to encompass more businesses.

Ministry of Finance reduced the threshold for GST E-Invoicing from Rs 10 crore to Rs 5 crore via a notification in May. As per the notification dated May 10, 2023 person registered under GST and having turnover more than Rs 5 Crore in any financial year from 2017-18 is required to comply with the e-invoice provisions.

E-invoicing mandates that GST-registered individuals must upload all B2B and export invoices to the Invoice Registration Portal (IRP). Afterward, the IRP issues a unique Invoice Reference Number, which is then transferred to the GST portal. This process facilitates invoice matching between buyers and sellers, reducing duplication and errors.

In June this year, the gross Goods and Services Tax (GST) revenue collected reached Rs 1,61,497 crore, marking the fourth instance when the monthly collection has surpassed the Rs 1.6 lakh crore milestone since the inception of GST. The average monthly gross GST collection for the first quarter of the current financial year 2023-24 stood at Rs 1.69 lakh crore, compared to Rs 1.10 lakh crore in FY22 and 1.51 lakh crore in FY23.