GST E-invoice limit not reduced to Rs 5 crore from 1st Jan 2023

E-invoice limit

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 turnoverMandatory implementation of e-invoice
Exceeding 500 crore 1st October 2020
Exceeding 100 crore1st January 2021
Exceeding 50 crore1st April 2021
Exceeding 20 crore1st April 2022
Exceeding 10 crore1st 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).”

Read Also: E-Invoice Under GST – Limit, procedure, Starting Date, benefits

“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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