You can download the E Invoice Limit 5 Crore Notification PDF for free by using the direct link provided below on the page.
E Invoice Limit 5 Crore Notification PDF
Starting from August 1, 2023, there will be a significant change in the GST e-invoicing rules. According to Notification No. 10/2023-Central Tax, dated May 10, 2023, the Central Goods and Services Tax Rules will undergo an amendment. This amendment involves a reduction in the threshold limit for GST e-invoicing from ten crore rupees to five crore rupees.
The decision to reduce the e-invoicing turnover limit has been made by the Central Board of Indirect Taxes and Customs (CBIC). Previously, businesses with a turnover of over ten crore rupees were required to generate e-invoices for all their business-to-business (B2B) transactions. However, with the new rule, this threshold has been lowered to five crore rupees.
It is important to note that the implementation of the electronic invoicing system for B2B transactions on a mandatory basis began on October 1, 2020. Initially, it was applicable to businesses with turnovers exceeding 500 crore rupees. The introduction of the e-invoicing system aimed to combat GST evasion and promote transparency in the tax system.
In light of the reduced threshold limit, businesses need to take necessary precautions to comply with the new regulations. Saurabh Agarwal, a Tax Partner at EY, suggests that industries review their vendor masters and ensure that any vendor supplying goods or services, and crossing the threshold turnover of five crore rupees, issues an e-invoice from August 2023 onwards. This step is crucial to avoid any disputes regarding the availing of input tax credit (ITC).
By adhering to the updated e-invoicing rules, businesses can maintain a smooth and hassle-free process of claiming input tax credit. It is advisable for businesses to stay informed about any further updates or clarifications regarding the implementation of this new threshold limit.
The reduction in the threshold limit for GST e-invoicing is a significant development in the tax landscape. Starting from August 1, 2023, businesses with turnovers exceeding five crore rupees will be required to generate e-invoices for their B2B transactions. This change aims to enhance tax compliance, curb evasion, and promote transparency in the GST system.