A recent Notification issued by India’s Central Board of Indirect Taxes and Customs (CBIC) reduces the turnover threshold for e-invoicing for Goods and Services Tax (GST).
With effect from 1 April 2021, e-invoicing will be mandatory for all taxpayers that have aggregate turnover exceeding INR500 million (approximately US$6.85 million) in any preceding financial year from 2017-18 onwards.
Earlier, the said threshold was reduced from INR5 billion to INR1 billion with effect from 1 January 2021.
With the e-invoicing implementation date for lower turnover approaching soon, businesses may need revise their processes and IT systems to enable compliance with the new invoicing regulation.
Source EY
