No proposal to lower threshold for e-invoice generation: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has said there is no proposal before the government to lower the threshold from January 1 for mandatory generation of e-invoices. Currently, businesses with a turnover of Rs 10 crore and above are required to generate an electronic invoice for all B2B transactions.
The comment from CBIC came after reports in some quarters 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 yet to issue a notification on the matter.
Under Goods and Services Tax (GST) law, 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, which was then 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.
