The Central Board of Excise and Customs (CBIC) on August 1 notified the lowering of the electronic invoicing threshold to Rs 10 crore and above from October 1. The GST Council, made up of finance ministers from the Center and the States, had decided to implement electronic invoicing gradually.
Under the Goods and Services Tax (GST) Act, electronic invoicing for business-to-business (B2B) transactions has been made mandatory for businesses with turnover above Rs 500 crore from October 1. 2020, which was later extended to those with a turnover of more than Rs 100 crore from 1 January 2021.
Since April 1, 2021, companies with turnover exceeding Rs 50 crore generated B2B electronic invoices, and the threshold was lowered to Rs 20 crore from April 1, 2022.
Going forward, the CBIC plans to further lower the threshold for generating electronic invoices to Rs 5 crore.
Deloitte India partner MS Mani said it would further broaden the GST tax base and provide more data to tax authorities, leading to better compliance.
“The gradual reduction of the e-invoicing threshold indicates that over a period of time, e-invoicing will become mandatory for all categories of GST taxpayers,” Mani added.