E-invoicing threshold to be further lowered from 1st October 2022
With the recent issuance of Notification No.17 2022, the threshold for mandatory e-invoicing will be further lowered to $10 crore (from $20 crore) on October 1, 2022. From this date, GST registered businesses with annual turnover of $10 crore or more must issue e-invoices for B2B transactions. Further, Vivek Johri, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC), has made the following statement: "We started with a very high threshold and soon we are going to have all taxpayers with an annual turnover of more than $5 crore having to generate e-invoices for their B2B part of business.” According to Mr Johri, the $5 crore threshold will likely to be introduced in the course of 2023. The India government has implemented e-invoicing in a phased manner ensuring minimum burden on the taxpayer community, the recent measures on threshold cuts will improve tax compliance and move closer to making e-invoicing mandatory for all GST taxpayers eventually. Tungsten has been supporting the e-invoicing mandate since its introduction in 2020 and is prepared to meet this new threshold requirement.