The government amended the notification in accordance with the Central Goods and Services Tax Rules, 2017, acting on the Council’s suggestions. E-invoicing’s phased implementation has improved compliance and raised collections, among other advantages for the entire tax ecosystem. E-invoicing for Business-to-Business transactions was made mandatory under the Goods and Services Tax (GST) law for companies with a turnover of over ₹ 500 crores starting on October 1, 2020, and then expanded to those with a turnover of over ₹ 100 crores starting on January 1, 2021. Companies that had a turnover of more than ₹ 50 crore started producing B2B e-invoices on April 1, 2021. On April 1, 2022, the threshold was reduced to ₹ 20 crore. The threshold was further reduced to ₹ 10 crore as of October 1, 2022. Lowering the e-invoicing threshold would allow the digital application to reach the MSME sector and would be advantageous for the entire business ecosystem in the long run by lowering costs, rationalizing errors, and accelerating invoice processing. The threshold for e-invoicing has been lowered by the Union government from ₹ 10 crores to ₹ 5 crores, and as a result, smaller businesses must begin using e-invoices as of August 1, 2023. In the aforementioned notification, ₹ 5 crore rupees shall be substituted for ₹ 10 crore rupees as of the first day of August 2023.
