As part of the phased reduction in the turnover limit for e-invoicing, the government informed on Wednesday night via a circular that e-invoicing will be required from registered entities with an annual turnover of Rs 5 crore from Aug. 1, 2023.
Earlier, this limit was fixed at Rs 10 crore, as per the notification issued by the ministry in August 2022.
The amendment notification stated, "In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendment...in the first paragraph, with effect from the 1st day of August, 2023, for the words 'ten crore rupees', the words 'five crore rupees' shall be substituted.
E-invoicing involves GST-registered businesses issuing electronic invoices for notified business-to-business transactions.
E-invoicing was originally proposed in Budget 2019 as a measure to curb invoice-related fraud and enable real-time tracking of invoices. The Covid-19 pandemic delayed its initial implementation and prompted the government to revise turnover thresholds.
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