The Central Board of Indirect Taxes and Customs (CBIC) has announced that starting from August 1, businesses with an aggregate turnover of Rs 5 crore or more will be required to mandatorily opt for e-invoicing under the Goods and Services Tax (GST) regime. This measure aims to “standardize invoices” and “reduce compliance burden” for GST-registered entities.
Threshold Reduced from Rs 10 Crore to Rs 5 Crore
In an effort to encompass more businesses and promote digital invoicing, the Ministry of Finance has reduced the threshold for mandatory e-invoicing registration from Rs 10 crore to Rs 5 crore. This change was implemented through a notification issued in May.
E-Invoicing Process Explained
E-invoicing mandates that GST-registered businesses must upload all Business-to-Business (B2B) and export invoices to the Invoice Registration Portal (IRP). The IRP then issues a unique Invoice Reference Number, which is transferred to the GST portal. This streamlined process facilitates invoice matching between buyers and sellers, effectively reducing duplication and errors.
GST Revenue Collection Update
As of June this year, the gross Goods and Services Tax (GST) revenue collected reached an impressive Rs 1,61,497 crore. This marks the fourth instance when the monthly collection has surpassed the Rs 1.6 lakh crore milestone since the inception of GST. The average monthly gross GST collection for the first quarter of the current financial year 2023-24 stood at Rs 1.69 lakh crore, showcasing a positive trend compared to the previous fiscal years.
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