Mandatory GST e-Invoicing Threshold Lowered to ₹5 Cr
Executive Summary
The CBIC has announced a reduction in the aggregate turnover threshold for mandatory generation of e-Invoices from ₹10 Crore to ₹5 Crore.
Why It Matters
Non-compliance will result in invalid tax invoices, disrupting the Input Tax Credit (ITC) chain for your B2B customers and attracting severe penalties under GST laws.
Action Required
Assess aggregate turnover across all PAN-India registrations. If it exceeds ₹5 Cr in any preceding financial year since 2017-18, integrate your billing systems with the Invoice Registration Portal (IRP).
Detailed Briefing
In a move to further digitalize the economy and plug tax evasion, the Central Board of Indirect Taxes and Customs (CBIC) has expanded the mandate for e-invoicing. Any registered person whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds ₹5 Crores must now generate an Invoice Reference Number (IRN) and QR code for all B2B supplies and exports. A standard invoice without an IRN will not be considered a valid document.
Who It Affects
All GST registered businesses with an annual aggregate turnover between ₹5 Cr and ₹10 Cr.
What Changed
The turnover limit for mandatory B2B e-invoicing has been slashed from ₹10 Crores to ₹5 Crores. Exemptions still apply for SEZ units, insurers, banking companies, and goods transport agencies.
Recommended Next Steps
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