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CBIC lowers turnover threshold for e-invoicing to INR5 crores with effect from 1 August 2023
This tax alert summarizes the recent Notification[1] issued by Central Board of Indirect Taxes and Customs (CBIC) reducing the turnover threshold for the purpose of e-invoicing.
With effect from 1 August 2023, provisions relating to e-invoicing will be applicable to taxpayers having aggregate turnover exceeding INR5 crores in any preceding financial year from 2017-18 onwards.
Earlier, the threshold limit for e-invoicing was reduced from time to time, as under:
- INR500 crores to INR100 crores (w.e.f. 1 January 2021),
- INR100 crores to INR50 crores (w.e.f. 1 April 2021),
- INR50 crores to INR20 crores (w.e.f. 1 April 2022), and
- INR20 crores to INR10 crores (w.e.f. 1 October 2022)
The move to reduce turnover threshold and increase the ambit of e-invoicing is mainly aimed at resolving mis-match errors and to check tax evasion.
Considering the timelines, concerned businesses may have to ramp up their IT systems in order to comply with the e-invoicing norms.
[1] Notification No. 10/2023 – Central Tax dated 10 May 2023