treeviewThe CBIC announced on Monday that there is no proposal before the government to decrease the threshold for obligatory e-invoice creation beginning January 1st.
Businesses having a turnover of Rs 10 crore or more are currently required to create an electronic invoice for all B2B transactions.
“At the moment, there is no proposal before the Government to decrease this threshold limit to Rs 5 crore with effect from 01.01.2023, as no such suggestion has been made by the GST Council,” the Central Board of Indirect Taxes and Customs (CBIC) tweeted.
According to media sources, the GST Council has proposed lowering the barrier for the creation of e-invoices to Rs 5 crore with effect from January 1, 2023, but the government has yet to release a notification on the topic.
E-invoicing for business-to-business (B2B) transactions was made required under GST law for enterprises having a turnover of more than Rs 500 crore from October 1, 2020, and was later extended to those with a revenue of more than Rs 100 crore on January 1, 2021.
Companies having a turnover of more than Rs 50 crore began generating B2B e-invoices on April 1, 2021, and the barrier was reduced to Rs 20 crore on April 1, 2022. The limit was reduced to Rs 10 crore on October 1, 2022.