The central government has notified lowering the threshold for e-invoicing from Rs 10 crore to Rs 5 crore after which it will be mandatory for small businesses to conduct business transactions through e-invoicing from August 1, 2023.
In the exercise of the powers of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendation of the Council, amended the notification.
“In the said notification, effective August 1, 2023, for Rs 10 crore, rs 5 crore will be substituted,” it said.
Phased implementation of e-invoicing has multiple benefits for the entire tax ecosystem, including improved compliance and enhanced collection, Rajat Mohan, Senior Partner, AMRG & Associates told.
“Reducing the e-invoicing threshold will expand digital applications in the MSME sector and benefit the overall business ecosystem through cost reduction, error rationalization and faster invoice processing in the long run,” he said.
