Threshold Limit Aggregate Turnover reduced for E-invoicing under GST

Last Updated On: March 13, 2021, 8:47 p.m.


The Central Board of Indirect Taxes and Customs (CBIC) has vide Notification No. 05/2021- Central Tax dated 8th March, 2021 reduced the aggregate turnover limit for the purpose of applicability of GST E-invoicing from Rs.100 Crores to Rs.50 Crores with effect from April 1, 2021.

The Board has vide above Notification has amended the first para of notification No. 13/2020 – Central Tax, dated the 21st March, 2020. The amendment is to reduce the aggregate turnover limit from Rs 100 crore to Rs 50 crore.

GST e-invoicing means creation of GST invoices by tax payers on their own Accounting / Billing / ERP systems and thereafter uploading the specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP).

Thereafter the IRP returns the e-invoice with a unique Invoice Reference Number (IRN) after digitally signing the e-invoice and adding a QR code. The, the invoice can be issued to the receiver (along with QR Code). A GST invoice will be valid only with a valid IRN.

As per Rule 48(4) of the CGST Rules, 2017 read with Notification No. 68/2019 – Central Tax Dated 13-12-2019, 13/2020-Central Tax dated 21-3-2020 & 61/2020 – Central Tax dated 30-7-2020 and Notification No. 70/2020- Central tax dated 30-9-2020 registered persons having turnover exceeding Rs 500 Crore in any of the last three Financial Years viz FY 2017-18, 2018-19 or 2019-20, has to do GST e-invoicing from 1st October,2020 in respect of supplies to registered persons (B2B), supplies to SEZ (with / without payment), Exports (with / without payment) , Deemed Exports, by notified class of tax payers. It may be noted that e-invoicing is not applicable for import Bill of Entry.

However SEZ units including Free Trade & Warehousing Zones (SEZ developers not exempt) , Insurer, banking companies or financial institution, including NBFC, GTA, supplier of passenger transportation service and Multiplexes are exempt from the e-invoicing mandate.

Also e-invoicing is not applicable to invoices issued by Input service distributors as such invoices are for distribution of ITC and not for outward supplies.

Later amendment was made in GST e-invoicing Notification No. 13/2020-Central Tax dated 21-3-2020 vide Notification No. 88/2020- Central Tax dated 10-11-2020 vide which the requirement of GST e-invoicing was extended to tax payers having aggregate turnover exceeding Rs 100 Crore in any of the last three Financial Years viz FY 2017-18, 2018-19 or 2019-20 from 1st January,2021.

Now vide Notification No. 05/2021- Central Tax dated 8th March, 2021 the aggregate turnover limit has further been reduced to Rs 50 crore from 1st April,2021.


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