Aggregate Turnover for E-invoice Applicability Reduced to Rs.10 Crore
December 7, 2022 ⚊ 1 Min read ⚊ Views 109 ⚊ BLOG
Until Monday, August 1, 2022, businesses with an aggregate annual turnover of more than Rs 20 crore were required to issue E-invoices under Rule 48 of the CGST Act 2017. From October 1, 2022, the Centre made E-invoicing mandatory for businesses with total revenue of more than Rs 10 crore.
This decision was made to protect the department’s revenue and to improve GST Act compliance. Surprisingly, the concept of E-invoice was introduced for the first time in the 35th GST Council. Since then, the limit has been reduced five times. Many businesses, ranging in size from Rs. 500 crores to Rs. 10 crores, have gradually been added to the system. Furthermore, businesses with a turnover of Rs 5 crore will be required to use e-invoicing by next year, according to officials. According to experts, this move will allow tax authorities to better analyze trends and the use or misuse of input tax credit across industries, as well as plug revenue gaps.
