CBIC lowers e-invoice turnover threshold to INR10 crore with effect from 1 October 2022

 This Tax Alert summarizes a recent Notification^[1] issued by the Central Board of Indirect Taxes and Customs (CBIC) under goods and services tax (GST).

With effect from 1 October 2022, e-invoicing will be applicable to taxpayers having aggregate turnover exceeding INR10 crore in any preceding financial year from 2017 to 2018 onwards.

Earlier, the threshold limit for e-invoicing was reduced from time to time, as under:

• INR500 crore to INR100 crore (w.e.f. 1 January 2021),
• INR100 crore to INR50 crore (w.e.f. 1 April 2021) and
• INR50 crore to INR20 crore (w.e.f. 1 April 2022).

As per media reports, we understand that the government is contemplating to further reduce the threshold to INR5 crore in the future.

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 will have to ramp up their IT systems in order to comply with the e- invoicing norms.