E-invoicing under GST for turnover above Rs 1.5 crore may be from next year

E-invoicing under GST limit

E-invoicing under GST: E-Invocing may be mandatory from next year for GST businessmen with an annual turnover of more than Rs 1.5 crore, as per the sources. Now, ‘e-invoicing’ is mandatory for B2B transactions for taxpayers with turnover above Rs 5 crores, earlier the limit was Rs 10 crore. It is a part of the initiative to replace physical invoices with ‘e-invoices,’ which will eventually help in dispensing with the e-way bill system. 

The GST e-Invoice System has also enabled the ‘E-Invoice voluntary enablement’ for Financial Year 2022-23. The mandatory current e-invoice limit is Rs 5 crore which implemented on the phased manner as follows:

Notification No. Effective From Turnover
61/2020 – Central Tax 01.10.2020 Rs 500 Cr
88/2020 – Central Tax 01.01.2021 Rs 100 Cr
05/2021 – Central Tax 01.04.2021 Rs 50 Cr
01/2022 – Central Tax 01.04.2022 Rs 20 Cr
17/2022 – Central Tax 01.10.2022 Rs 10 Cr
10/2023 – Central Tax 01.08.2023 Rs 5 Cr

Tax Solution Subscription

Irrespective of the turnover, e-invoicing in GST is not applicable to various categories of registered persons as detailed in CBIC notification No. 13/2020, including:

  • Insurer, banking company, or an NBFC
  • Goods transport agency
  • Registered individuals supplying passenger transportation
  • An SEZ unit
  • A government department or local authority
  • Registered individuals supplying services via admission to the exhibition of cinematographic films in multiplexes
  • Person dealing in B2C transactions only

GST taxpayers are subject to E-Invoice if their aggregate turnover is more than the prescribed limit. Aggregate turnover includes all types of outward supplies (sales or services) whether it is B2B or B2C, SEZ or Exports, Taxable or Exempted, everything put together needs to be accumulated to check the turnover limit for e invoicing applicability.

Disclaimer:The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.
Also, www.babatax.com and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.

For Collaborating with us-

Tags: Uncategorized

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed