CBIC Reduced the Turnover Limit for GST E-Invoicing

CBIC Reduced the Turnover Limit for GST E-Invoicing
Shivani Jain
| Updated: Mar 22, 2021 | Category: GST

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, Read: Invoicing for GST in India – Invoice Format, Bill of Supply, Time limits

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.

Conclusion

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.

Also, Read: E-Invoice System under New GST Return- Its Benefits and Implementation

Official CBIC Notification on Reduced Turnover Limit

Official-CBIC-Notification-on-Reduced-Turnover-Limit

Spread the love
Shivani Jain

Shivani has completed her B com LLB (Hons) and has the experience of writing various research papers during her college time. Earlier she was working as an Associate in a Delhi based Law Firm, but her interest in writing made her pursue Legal Content Writing as a career. Her core area of interest is in writing about various legal enactments, tax, and finance.

 

Related Articles

GST Department Cannot Block Import Export Code
| Date: Dec 16, 2020 | Category: GST, IEC, News

GST Department Cannot Block Import Export Code: Bombay HC

Recently, the division bench of Justice Ujjal Bhuyan and Abhay Ahuja of the Bombay High Court held that the suspension or cancellation of the Importer Exporter Code can only be...

Read More
GST applicability on NBFCs
| Date: Mar 22, 2021 | Category: GST, NBFC

GST Applicability on NBFCs: A Complete Overview

After implementing GST (Goods and Service Tax) in India, it brings a significant change from the present tax regime. Unlike the past tax regime, it is completely free and transparent...

Read More
GST Network Introduces Feature of Letter of Undertaking for FY 2021-22
| Date: Feb 22, 2021 | Category: GST, News

GST Network Introduces Feature of Letter of Undertaking for FY 2021-22

The Goods and Service Network has decided to introduce the feature of Letter of Undertaking (LUT) for the financial year 2021 to 2022 on the GST portal. Further, the same...

Read More

ARTICLES

Hi! My name is Akanksha! Let's talk.