Applicability of E-Invoicing under GST w.e.f 1st August, 2023

GST Update-2/2023

E-invoice:

Under e-invoicing system, all business-to-business invoices shall be prepared digitally by including such particulars as contained in FORM GST INV-01 after obtaining an invoice reference number by uploading information contained therein on the Common Portal in such manner and subject to conditions and restrictions as may be specified in the notification.

Rules:

Sub-rule (4) of the rule 48 of the Central Goods and Service Tax Rules, 2017, such class of registered persons, as notified by the Central Government on the recommendation of the Council, shall be required to prepare e-invoices in respect of supply of goods or services or both to a registered person [or for exports].

Invoices: 

Applicable to B2B invoices only. All business to business invoices issued by the notified registered persons shall be covered under this rule. 

Persons required to prepare E-invoices: 

E-invoicing is applicable to all registered persons, other than [a SEZ unit] and those referred to in sub-rules (2), (3), (4), and (4A) of Rule 54 of the Central Goods and Service Tax Rules, 2017, whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds 5 crore rupees.

Turnover Limit:

E-invoicing is applicable to all notified registered persons having aggregate turnover in any preceding financial year from 2017-18 onwards exceeds 5 Crore rupees as per Notification-10/2023- Central Tax - dated - 10th May, 2023.

Currently, threshold limit is the aggregate turnover exceeds 10 Crore rupees till 31st July, 2023.

Effective Date:

The new turnover limit will be applicable with effect from 1st August, 2023.