e-Invoice limit of 5 crore is newly notified from 1st August 2023. e-Invoicing or electronic invoicing system was introduced under the Goods and Services Tax (GST) law and applies to certain taxpayers registered under the GST law in phases. e-Invoice 5 crore notification 10/2023 was issued on 10th May 2023. Accordingly, the GST e-invoice limit for turnover more than Rs.5 crore in any financial year from 2017-18 applies from 1st August 2023.
Effective from August 1, 2023, the limit for GST e-invoicing will be reduced to Rs. 5 crore. This change in the Goods and Services Tax (GST) system aims to enhance tax compliance and streamline the invoicing process for businesses.
Latest Updates
10th May 2023
CBIC notified the 6th phase of e-invoicing. Hence, taxpayers with Rs.5 Cr+ turnover in any financial year from 2017-18 shall issue e-invoices w.e.f 1st August 2023.
6th May 2023
The GST department has deferred the time limit of 7 days to report the old e-invoices on the e-invoice IRP portals by three months. Further, the department is yet to announce the new implementation date.
13th April 2023
As per the GST Network’s advisories dated 12th April 2023 and 13th April 2023, taxpayers with annual turnover equal to or more than Rs.100 crore must report tax invoices and credit-debit notes to IRP within 7 days of invoice date from 1st May 2023.
From 1st August 2023, e-invoicing is mandatory for businesses with an annual aggregate turnover of over Rs.5 crore in any previous financial year from 2017-18.
Earlier, phase I applied to the e-invoice turnover limit of more than Rs.500 crore from 1st October 2020. During phase II, businesses with a yearly turnover of over Rs.100 crore started to issue e-invoices from 1st January 2021.
Phase III extended to businesses with an annual turnover of more than Rs.50 crore beginning from 1st April 2021. A year later, the government reduced the e-invoice limit to more than Rs.20 crore as phase IV. Phase V has been implemented recently from 1st October 2022 for businesses with an annual turnover of over Rs.10 crore.
So, e-invoicing applies to-
Tax invoices,
Debit notes,
Credit notes, and
Invoice-cum-bill of supply
The e-invoicing system covers transactions such as-
Taxable Business-to-Business (B2B) supply of goods or services,
Business-to-Government (B2G) supply of goods or services,
Export sales, and
Sales falling under the Reverse Charge Mechanism (RCM)
The e-invoicing scope excludes the below documents, transactions, and businesses-
Exempted sales for which the bill of supply is raised,
Imports,
Job works,
Delivery challans
Banks, financial institutions, and insurance companies
Exhibiting cinematographic films on multiplex screens
Non-banking financial companies,
Goods transportation and passenger transportation agencies,
Units in SEZ or special economic zones, and
Government departments.
GST e–invoices are mandatory for businesses with an annual turnover of 5 crore or more in order to maintain financial compliance with the Goods and Services Tax (GST) in India. IConnect provides an efficient and digital way to manage e–invoices, ensuring accuracy and compliance to all GST regulations.