The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification stating that there are no plans to reduce the Turnover Limit for GST e-Invoicing requirements from Rs 10 crore to Rs 5 crore, as is being quoted in certain news reports on the behest of the GST Council to be applicable from January 1, 2023.
In this regard, the CBIC tweeted on December 26, 2022, that some news reports appeared in the media today suggesting that even though the “GST Council” has recommended reducing the threshold for generation of e-invoices to Rs. 5 crore w.e.f. January 1, 2023, the Government/CBIC has yet to issue a notification in the matter, which is giving rise to uncertainties amongst taxpayers.
| Finally CBIC has announced on May 10, 2023 to reduce the e-Invoicing limit from Rs 10 crore to Rs 5 crore w.e.f. 01/08/2023. For details, please refer the post below: GST e Invoicing: Reduction in Turnover Limit, Exclusions and Deadline Extensions by CBIC |
Therefore, CBIC has clarified that presently, e-invoicing has been made mandatory for registered persons having aggregate turnover more than Rs. 10 crore in any preceding financial year from 2017-18 onwards as per Central Tax Notification 17/2022 dated 01/08/2022.
Further, CBIC has stated that at present there is no proposal before the Government to reduce this threshold limit to Rs 5 crore with effect from January 1, 2023, as no such recommendation in this regard has been made by the GST Council so far.
From the above clarification by CBIC, we can conclude that such news reports on the reduction of the turnover limit to Rs 5 crore from January 1, 2023 for B2B “e-invoicing” are not backed by facts or official information, so we need to ignore them.
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GST e Invoicing: Reduction in Turnover Limit, Exclusions and Deadline Extensions by CBIC
GST Network made every effort to implement e-invoicing for taxpayers with a turnover of more than Rs 5 crore on January 1, 2023. However, due to technical difficulties, this could not be accomplished. We can’t deny that something similar isn’t in the works. It is highly likely that such a requirement will be implemented on or before April 1, 2023.
What does “CBIC has stated that there is currently no proposal before the Government…” mean?
Is it true that the GST Council has made no such recommendation? or GST Council has recommended but the Government/CBIC has not yet decided to implement such requirement? CBIC must provide clarification.