• Notification Date: 28-12-2022
  • Notification No: N/A

CBIC: No Proposal before Govt to Lower Threshold for Generating E-invoice

On Monday, the CBIC reported that there is no proposal before the government to lower the threshold from January 1 for mandatory generation of e-invoices. At present, businesses with a turnover of Rs 10 crore and above are required to generate an electronic invoice for all B2B transactions. 
The Central Board of Indirect Taxes and Customs (CBIC) tweeted that at present there is no proposal before the Government to reduce this threshold limit to Rs 5 crore with effect from 01.01.2023. The CBIC added that there has been no such recommendation made by GST Council as yet.  

The tweet from CBIC came after media reports in some quarters. It said that though GST Council has recommended reducing the threshold for the generation of e-invoices to Rs 5 crore with effect from January 1, 2023, the government has not issued a notification on the matter yet. 

E-invoicing for business-to-business (B2B) transactions was made mandatory for companies with a turnover of over Rs 500 crore from October 1, 2020, under Goods and Services Tax (GST) law. This rule was further extended to those with a turnover of over Rs 100 crore, effective January 1, 2021. From April 1, 2021, companies with turnover of over Rs 50 crore were generating B2B e-invoices, and the threshold was brought down to Rs 20 crore beginning April 1, 2022. From October 1, 2022, the level was further lowered to Rs 10 crore.