The GST Council had decided on the phased implementation of electronic invoice with the aim to bring all the small businesses under the formal economy. The current e-invoice limit is Rs 10 crore which implemented on the phased manner as follows:
|Annual turnover||Mandatory implementation of e-invoice|
|Exceeding 500 crore||1st October 2020|
|Exceeding 100 crore||1st January 2021|
|Exceeding 50 crore||1st April 2021|
|Exceeding 20 crore||1st April 2022|
|Exceeding 10 crore||1st October 2022|
However, some news reportt states that e-invoice is applicable to the businesses with 5 crore turnover wef 1st January 2022. CBIC has clarified this fake News via tweet-
“Some news reports have appeared in media today suggesting that though GST Council has recommended reducing threshold for generation of e-invoice to Rs.5 cr wef 1.1.23, the Govt. has yet to issue notification in the matter, giving rise to uncertainties amongst the taxpayers.”
“It is clarified that presently, e-invoicing has been made mandatory for registered persons having aggregate turnover more than Rs. 10 crore in any preceding financial year from 2017-18 onwards (Refer Notification no. 17/2022-Central Tax dated 01.08.2022).”
“There is no proposal before the Government, at present, to reduce this threshold limit to Rs 5 Crore with effect from 01.01.2023, as no such recommendation has been made by GST Council as yet.”
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