E-invoicing scheme to include more businesses from 1 August

From August 1, 2023, E-invoicing will be required for all companies with revenues up to Rs. 5 crore. E-invoicing was first introduced in India on 1 October, 2020 for businesses with sales over Rs. 50 crores, however, the threshold was gradually lowered to Rs. 10 crore. 

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New Delhi, June 4: More Indian companies will start participating in the e-invoicing programme in August, which is intended to track business-to-business (B2B) sales. As per the latest media reports, small businesses will be allowed to sell through e-commerce platforms without a Goods and Services Tax (GST) registration from October this year.

The e-invoicing programme, which applies to all sales other than those made at retail locations, is a requirement for reporting transactions to specific portals with the goal of enhancing compliance. The information provided at the time of the transaction avoids disputes, improves efficiency and accuracy in reporting, and pre-fills tax forms.

Shashank Priya, member (GST) in the Central Board of Indirect Taxes and Customs (CBIC), stated at a conference organized by FICCI, that the game changing step of introducing e-invoicing in 2020 will be expanded in August.

E-invoicing was first introduced in India on 1 October, 2020 for businesses with sales over ₹50 crores, however, the threshold was gradually lowered to ₹10 crore as of 2023. “From 1 August, e-invoicing will become compulsory for businesses with sales up to ₹5 crore,” explained Shashank Priya.

Presently, GST registration is mandatory for sales through e-commerce platforms regardless of the turnover of the supplier. This is in contrast to offline traders, who do not require GST registration for up to ₹4 million.