In line with Central Tax Notification 10/2023 relating to reduction in threshold limit for e-invoicing, the Goods and Services Tax Network (GSTN) has recently issued an Advisory on 16th June 2023 regarding the update on enablement status of eligible taxpayers for e-Invoicing.
Background: Reduction in Threshold
As per recent Central Tax Notification 10/2023 dated 10th May 2023, the threshold for e-Invoicing in Business-to-Business (B2B) transactions has been reduced from Rs 10 crore to Rs 5 crore, effective from 1st August 2023.
Enablement of e-Invoicing
To facilitate the implementation of the abovesaid revised threshold, GSTN has enabled e-Invoicing on all six Invoice Registration Portals (IRPs), including NIC-IRP. This enables eligible taxpayers with an Aggregate Annual Turnover (AATO) of Rs 5 crores in any preceding financial year to report their e-Invoices through these portals.
Taxpayers Need to Check Enablement Status
To determine their enablement status, taxpayers are advised to visit the e-Invoice portal at https://einvoice.gst.gov.in. By accessing this portal, taxpayers can verify whether their account has been enabled for e-Invoicing, to ensure compliance.
Utilizing the Sandbox Testing Facility
To facilitate a seamless transition to the mandatory e-Invoice system, GSTN recommends all eligible taxpayers to register and utilize the sandbox testing facility available on the IRP portals. This testing environment allows taxpayers to familiarize themselves with the invoice reporting mechanism, ensuring a smooth and error-free experience when generating e-Invoices.
Understanding the Enablement Status
It is important to note that the enablement status displayed on the e-Invoice portal does not impose a legal obligation on taxpayers to utilize e-Invoicing. The actual liability to generate Invoice Reference Numbers (IRN) must be determined by taxpayers based on the applicability of the e-Invoicing notification and the specific circumstances of their case.
Verification of Eligibility
While the listing of enabled GST Identification Numbers (GSTINs) is primarily based on the turnover criteria reported in GSTR-3B, it is essential for taxpayers to confirm whether they meet the conditions outlined in the e-Invoice notification and rules. Thus, both buyers and suppliers bear the legal responsibility of ensuring compliance with the e-Invoicing requirements.
Self-Enabling for e-Invoicing
In cases where a taxpayer is eligible for e-Invoicing but has not been auto-enabled on the e-Invoice portal, they have the option to self-enable. The portal provides a functionality for taxpayers to enable e-Invoicing themselves, ensuring they can fulfill their invoicing obligations seamlessly.
In conclusion, GSTN has emphasized that all eligible taxpayers should familiarize themselves with the e-Invoicing requirements and take the necessary steps to ensure compliance with the new reduced threshold of Rs 5 crore, effective from 1st August 2023.