CBIC Reduced the Turnover Limit for GST E-Invoicing
On 08.03.2021, the Central Board of Indirect Taxes and Customs (CBIC), by way of a Notification No 05/ 2021, has reduced the turnover limit for GST E-invoicing. The said notification will come into effect from 01.04.2021 onwards.
Further, the same was done under the ambit of the powers provided by Rule 48 sub rule (4) of the Central Goods and Service Tax Rules 2017.
Concept of GST E-invoicing
The term E-invoicing or Electronic Invoicing means a mechanism in which B2B (Business to Business) invoices are validated electronically by the Goods and Service Tax Network (GSTN) for the extended use on the official GST Portal.
Further, under the electronic invoicing mechanism, a unique identification number will be generated against every invoice by the IRP (Invoice Registration Portal). The same will be managed and supervised by the GSTN.
Also, it shall be noted that the first IRP was launched by NIC (National Informatics Centre) at einvoice1.gst.gov.in.
Furthermore, all the details concerning invoice will be transferred from this website to both the E-way Bill Portal and GST Portal in real time.
Thus, the main benefit of GST E-invoicing is that it eliminates the need for manual data entry, as the information and details are directly passed by IRP to the GST Portal.
Also, it shall be noted that the Central Board of Indirect Taxes and Customs have reduced the Turnover Limit for GST Invoicing from Rs 100 crores to Rs 50 crores.
In a nutshell, the new turnover limit for GST E-invoicing is Rs 50 crores, and the same has been reduced from the earlier limit of Rs 100 crores. Further, the said limit will become applicable from 01.04.2021.