Is GST E-invoicing limit going to be can be decreased to INR 1.5?
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Is the GST e-invoicing limit going to be can be decreased to INR 1.5?
- The Goods and Services Tax Council may soon make e-invoicing compulsory for Goods and Services Tax taxpayers with a turnover of INR 50,000,000.
- Now the Central Board of Indirect Taxes and Customs has issued recommendations for mandatory new e-invoicing for Goods and Services Tax taxpayers with sales of more than INR 5,00,00,000. The above decision is going to be implemented with effect from 1.08.2023.
- As per sources, in the above case, the decision was to further decrease the e-invoice threshold limit to INR 1,50,00,000/-. is taken in the upcoming Goods and Services Tax Council Meeting, then it might be effective from 1st December 2023.
- One senior GST officer says Goods and Services Tax taxpayers will get sufficient time to implement the same.
Who Must Generate e‑Invoices? (Turnover-based Phases)
| Phase | Applicable to taxpayers with AATO > | Effective From | Notification |
|---|---|---|---|
| I | ₹500 crore | 01‑10‑2020 | 61/2020, 70/2020 |
| II | ₹100 crore | 01‑01‑2021 | 88/2020 |
| III | ₹50 crore | 01‑04‑2021 | 05/2021 |
| IV | ₹20 crore | 01‑04‑2022 | 01/2022 |
| V | ₹10 crore | 01‑10‑2022 | 17/2022 |
| VI | ₹5 crore | 01‑08‑2023 | 10/2023 |
If turnover crosses the threshold in the current financial year, e‑invoicing applies from the next financial year.
Exemptions from e‑Invoicing under GST law
Regardless of turnover, the following entities are exempt:
- Notified Businesses : Insurers, Banks/Financial Institutions/NBFCs, Goods Transport Agencies (GTA), Passenger transport service providers, Cinema exhibition service providers (multiplex), SEZ units, Government departments & local authorities, and OIDAR service providers
- Documents/Transactions excluded : B2C supplies, Exempt/Nil-rated B2B or B2G supplies, Imports, High-seas/bonded warehouse transactions, FTWZ transactions and Reverse charge under section 9(4)
Time Limit for Reporting e‑Invoices under GST
- As per the advisory of 5 November 2024, the mandatory 30-day GST reporting time limit applies to AATO ≥ ₹100 crore. and extended to AATO ≥ ₹10 crore from 1 April 2025.
How e‑Invoicing Helps Prevent Tax Evasion under GST
- Real‑time reporting = immediate visibility of transactions
- No gap to manipulate invoices post-transaction
- Fake ITC becomes difficult due to system matching
- Audit trail improves transparency
Mandatory Fields of an e‑Invoice
The e‑invoice schema contains 12 sections + 6 annexures (total 138 fields), 5 mandatory sections like Basic details, Supplier details, Recipient details Invoice item details, Document total, and 30 mandatory fields, including Document type (INV/CRN/DBN), Supplier legal name & GSTIN, Address & State code, Invoice number & date, Item details, Tax amounts, and Original invoice reference (in case of amendments)
From 1 June 2025: IRP will treat invoice numbers as case‑insensitive and convert them to uppercase automatically.
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