The Ministry of Finance vide its Notification no. 01/2022, dated 24th February 2022 has reduced the threshold limit for mandatory issuance of e-invoices from 50 crores to 20 crores under Goods and Services tax with effect from 1st April 2022.
E-Invoice is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number is issued against every sale invoice by the Invoice Registration Portal (IRP).
E-invoicing was mandatory from 1st October 2020 to all businesses (other than a Special Economic Zone unit and those referred to in sub-rules (2), (3), (4), and (4A) of rule 54 of the GST rules) whose aggregate turnover has exceeded the Rs.500 crore limit in any of the previous financial years from 2017-18 to 2019-20. From 1st January 2021, e-invoicing became applicable to businesses exceeding the Rs.100 crores turnover limit in any of the financial years between 2017-18 to 2019-20. Likewise, it was extended to businesses with a total turnover of more than Rs.50 crores. From 1st April 2022 which the threshold limit is no revised to Rs.20 crores.
