REVISED E-INVOICING LIMIT UNDER GST WEF 01.08.2023
As per the latest notification (No. 10/2023 central tax) issued by the Ministry of Finance, from 1st August 2023, businesses registered under GST and having a turnover of more than Rs. 5 Crore in any financial year from 2017-18 will be required to comply with the e-invoicing provisions. This means that they will have to generate an Invoice Reference Number (IRN) for each tax invoice, debit note, and credit note issued to registered persons.
This e-invoice requirement will apply to both supply of goods and supply of services, and it will be in addition to the generation of e-way bills for the movement of goods.
However, certain categories of registered persons, such as Insurance Companies, Banking Companies or Financial Institutions, SEZ Units, Government Departments, and Local Authorities, as well as Goods Transport Agencies, are exempted from the e-invoice mandate as per the CBIC Notification no. 13/2020 - Central tax.
The government has adopted a phased approach to implementing the e-invoice provisions, starting with higher turnover businesses and gradually reducing the threshold over time. This stepwise manner aims to facilitate a smoother transition and easier adoption for businesses. The turnover thresholds have been gradually reduced from Rs. 500 crores to Rs. 5 crores, with the latest threshold of Rs. 5 crores applicable from 1st August 2023.
Company Bio: PKP is a trusted and leading firm that specializes in delivering comprehensive services related to e-invoicing and compliance with GST regulations. With expertise in assisting businesses registered under the Goods and Services Tax (GST) framework, PKP has established itself as a leading player in the industry.