CBIC Reduces GST E-invoicing Turnover Limit to INR 5 Crore
Overview
The CBIC issued Notification No. 10/2023 – Central Tax dated May 10, 2023, to amend the earlier issued Notification No. 13/2020 – Central Tax dated March 21, 2020, and reduced the aggregate turnover limit from INR 10 Crore to INR 5 Crore for the applicability of E-invoicing provisions with effect from August 01, 2023. The summary of the aforesaid changes is reproduced below.
Applicability Prior to the Amendment
Prior to the above-said amendment, every registered person whose aggregate turnover exceeded INR 10 Crore in any of the financial years beginning from FY 2017–18 had to comply with E-invoicing provisions and generate E-invoices against the following documents:
- Tax invoices issued to registered persons
- Debit Notes issued to registered persons
- Credit Notes issued to registered persons
- Export transactions
Revised Threshold under the Amendment
With effect from 1st August 2023, the above-mentioned threshold limit stands reduced to INR 5 Crore.
In other words, where the aggregate turnover in any of the financial years beginning from FY 2017–18 exceeds INR 5 crore, the registered person is required to comply with the E-invoicing provisions commencing from 1st August 2023.
This change expands the applicability of the E-invoicing framework to a larger base of taxpayers and makes timely compliance increasingly important under broader taxation advisory services, specialized indirect tax advisory services, and end-to-end GST advisory and compliance services.
Class of Registered Persons Exempted from E-invoicing Provisions
The following class of registered persons shall be exempted from the E-invoicing provisions:
- Insurance company
- A banking company or a financial institution
- SEZ Units
- Government Department and Local Authorities
- Goods Transport Agency
Relevant Notification Links
The complete text of the relevant notifications can be accessed from the links below:
- https://einvoice1.gst.gov.in/Notifications/notfctn-13-central-tax-english-2020.pdf
- https://taxinformation.cbic.gov.in/content-page/explore-notification
Additional Resources
To further understand the broader compliance implications of GST digitization, return alignment, and invoice-level reporting obligations, the following resources provide relevant context: