GST e-invoicing mandatory for businesses with over Rs 5 crore
Central Board of Indirect Taxes and Customs (CBIC) introduces a new mandatory e-invoicing turnover limit of Rs. 5 Crore from August 01, 2023.
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The Indian government has decided to make GST e-invoicing mandatory for all businesses with annual turnover above Rs 5 crore. Electronic invoicing will become mandatory from 1st August 2023, according to a notification by the Central Board of Indirect Taxes and Customs (CBIC), Department of Revenue, Ministry of Finance.
The e-invoicing turnover limit has been reduced by the CBIC, from the present Rs 10 crore to Rs 5 crore.
The CBIC notification said that all GST taxpayers whose aggregate annual turnover exceeds Rs 5 crore in any financial year will have to mandatorily generate e-invoices for business-to-business (B2B) supply of goods and/or services or for exports.
CBIC’s aim is to digitize the higher volume of transactions, effective clarity in the sales reporting, reduce errors and mismatches, automate the data entry work and rectify compliance.
The e-Invoice System is for GST-registered taxpayers for uploading all the business-to-business (B2B) invoices to the Invoice Registration Portal (IRP). The IRP generates and returns a unique Invoice Reference Number (IRN), digitally signed e-invoice and QR code to the user.
The taxpayers can view on the website, aggregate turnover for the current fiscal year as well as for the last fiscal year. In case where a business is registered in more than one state, using one Permanent Identification Number, the Aggregate Annual Turnover (AATO) will be calculated as the annual turnover of all entities.