The Central Board of Indirect Taxes and Customs (CBIC) has reduced the applicability threshold for e-Invoices from Rs. 10 Crores to Rs. 5 Crores.
The notification reduced the limit to include more businesses and to widen the tax-base. The notification issued by CBIC stated as follows: –
“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 notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely:-
In the said notification, 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.
The Central Board of Indirect Taxes and Customs (CBIC) had earlier made mandatory E-invoicing for businesses with aggregate turnover exceeding ₹10 crore with effect from October 1, 2022.
From 1st April 2020, the E-invoicing was made mandatory. For businesses having turnover less than 100 Crore, it was implemented voluntarily and on a trial basis from 1st April 2020.
The principal notification No. 13/2020 – Central Tax, dated the 21st March, 2020 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated the 21st March, 2020 and was last amended vide notification No. 17/2022-Central Tax, dated the 1st August, 2022, published vide number G.S.R. 612(E), dated the 1st August, 2022.
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