What Is the New E-invoice Limit by the GST Department?

The electronic invoice, also known as electronic invoice, is a digital document used to record a business transaction.

Invoices are sent and received electronically and eliminate the need for paper invoices. Electronic invoices are considered more efficient and secure than paper invoices and can save businesses time and money.

The National Center for Informatics states: “e-Invoice is a system where GSTN electronically authenticates B2B invoices for further use on the common GST portal. Under the electronic invoicing system, the Invoice Registration Portal (IRP) will issue an identification number against each invoice, which will be managed by the GST Network (GSTN)”.

Recently, the Goods and Services Tax department has made it mandatory for companies with a turnover of Rs 5 crore or more to submit electronic invoices. This new rule is implemented from August 1, 2023.

The GST website notification reads: “GSR….(E).- In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Regulations of the Tax on Goods and Services of 2017, the Government, following the recommendations of the Council, by hereby makes the following further amendment to the notice from the Government of India to the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated 21 March 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) see number GSR 196 (E), dated March 21, 2020, namely: – In said notification, in the first paragraph, effective as of August 1, 2023, by The words “ten million rupees” will be replaced by the words “five million rupees”.

The previous amount was set at Rs 10 crore and came into effect on October 1, 2022. The latest change was announced on July 29 when the Central Board of Indirect Tax and Customs tweeted about the new change.

Attention GST payers whose aggregate annual turnover exceeds Rs 5 crore in any of the previous financial years, from 1 August 2023, the generation of electronic invoices will be mandatory for all B2B supply of goods or services or both, or for exports. pic.twitter.com/VzTi6s4JrY

– CBIC (@cbic_india)
July 29, 2023

Which companies are exempt from electronic invoicing?

According to ClearTax, these categories are exempt from submitting an electronic invoice:

  • “An insurer, banking company or financial institution, including an NBFC
  • A Goods Transport Agency (GTA)
  • A registered person who provides passenger transportation services.
  • A registered person who provides services by admitting to the exhibition of motion pictures in multiplex services.
  • One SEZ unit (excluded through CBIC Notification No. 61/2020 – Central Tax)
  • A government department and a local authority (excluded through CBIC Notification No. 23/2021 – Central Tax)
  • Persons registered in terms of Rule 14 of the CGST (OIDAR) Rules”

Categories: Optical Illusion
Source: sef.edu.vn

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