Govt reduces e-invoicing threshold to Rs 5 cr businesses from Aug 1

New Delhi, May 11 (KNN) The central government has brought down the threshold for e-invoicing to Rs 5 crore for B2B transactions with effect from August 1, 2023.

Currently, the e-invoice mandate is applicable for businesses with a turnover of and above Rs 10 crore, according to the news agency PTI. 

The changes were notified by the ministry of finance on Wednesday.

Effective from August 1, any taxpayer with a turnover exceeding Rs 5 crore should raise e-invoices for B2B supplies.

Deloitte India Partner Leader Indirect Tax Mahesh Jaising said the scope of MSMEs under e-invoicing will be expanded and they will need to implement e-invoicing with this announcement, reported Mint.

“For companies, e-invoicing is a boon rather than a bane as suppliers who are e-invoicing compliant result in proper flow of input tax credit and reduce the churn around credit issues,” he added. 

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 threshold was further lowered to Rs 10 crore.  (IKNN Bureau)