A recent Notification1 issued by India’s Central Board of Indirect Taxes and Customs (CBIC) reduces the turnover threshold for e-invoicing for Goods and Services Tax (GST).
With effect from 1 April 2021, e-invoicing will be mandatory for all taxpayers that have aggregate turnover exceeding INR500 million (approximately US$6.85 million) in any preceding financial year from 2017-18 onwards.
Earlier, the said threshold was reduced from INR5 billion to INR1 billion with effect from 1 January 2021.
With the e-invoicing implementation date for lower turnover approaching soon, businesses may need revise their processes and IT systems to enable compliance with the new invoicing regulation.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (India), India VAT Team
- Abhishek Jain, Delhi
- Heetesh Veera, Mumbai
- Sagar Shah, Pune
- Vivek Pachisia, Bangalore
- Sriram Balakrishnan R, Chennai
- Aisha Hussaini, Hyderabad
- Sidhartha Jain, Kolkata
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
