The Central Board of Indirect Taxes and Customs on 1st August 2022, has reduced the threshold for mandatory issuance of e-invoice from Rs.20 crore to Rs.10 crore with effect from 1st October 2022.
e-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network (GSTN).
e-Invoicing was made mandatory from 1st October 2020 to all businesses (other than a Special Economic Zone unit and those referred to in sub-rules (2), (3), (4), and (4A) of rule 54 of the GST rules)whose aggregate turnover has exceeded the Rs.500 crore limit in any of the previous financial years from 2017-18 to 2019-20. From 1st January 2021, e-invoicing became applicable to businesses exceeding the Rs.100 crore turnover limit in any of the financial years between 2017-18 to 2019-20. Likewise, it was extended to businesses with a total turnover of more than Rs.20 crore from 1st April 2022 which is now reduced to Rs.10crore.
