GST E invoice limit reduced to Rs.5cr from 1st August 2023
Notification No. 10/2023-Central Tax Dated: 10th May, 2023 related to Central Goods and Services Tax Rules, involving a reduction in threshold for GST E Invoice limit from ten crore rupees to five crore rupees, effective from August 1, 2023. formerly registered individual whose revenue exceeds Rs.10 In order to comply with the GST E invoice provision, he must generate an GST E invoice for each registered person’s tax invoice, debit note, or credit note.
By Notification No. 10 of 2023, the Ministry of Finance will now on May 10 10/2023 The central tax has informed a person who is registered for the GST and has a turnover of more than Rs. 5 Crore in any fiscal year beginning in 2017-18 must be submitted in accordance with the GST E invoice limit provisions from now on. 01st August 2023 i.e., he will be expected to create IRN/e-receipt against followings: –
- Each tax invoice, debit note & credit note issued to registered person.
- Export Transactions
Above GST E invoice limit applicable on supply of goods as well as supply of service and this is in addition to the generation of e-way bill.
However,GST E invoice limit shall not be applicable on following types of registered person as notified by CBIC by Notification no. 13/2020 – Central tax amended time to time.
- Insurance Company
- Banking Company or a financial Institutions
- SEZ Units
- Government Department and Local Authorities
- Goods Transport Agency.
The Government’s decision to cover businesses in a phased manner rather than imposing its application on all of them at once is commendable. It began with a Rs threshold limit. 500 crores, then steadily carried down to Rs. Rs. 100 crores later. Rs. 50 crores later. 20 crores, then, at that point, Rs. ten crores, and finally Rs. 5 crores (material from first Aug, 2023).
The Government’s check will cover a wider area if this threshold limit is lowered because GST E invoice would be less susceptible to manipulation.
Notification No. 10/2023 is as below: –
Ministry Of Finance
(Department Of Revenue)
(Central Board of Indirect Taxes And Customs)
Notification No. 10/2023 – Central Tax Dated: 10th May, 2023
G.S.R. 355(E).—In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely:-
In the said notification, in the first paragraph, with effect from the 1st day of August, 2023, for the words “ten crore rupees”, the words “five crore rupees” shall be substituted.
[F. No. CBIC- 20021/1/2023-GST] ALOK KUMAR, Director
Note : The principal notification No. 13/2020 – Central Tax, dated the 21st March, 2020was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated the 21st March, 2020 and was last amended vide notification No. 17/2022-Central Tax, dated the 1st August, 2022, published vide number G.S.R. 612(E), dated the 1st August, 2022.
Faqs on GST E invoice limit reduced to Rs.5cr from 1st August 2023
01st August 2023. Checkout. who is covered and who is not? CBIC vide Notification No.10/2023 – Central Tax dated 10.05.2023 has further reduced the GST E invoice limit from Rs. 10 Crore to Rs. 5 Crore w e.f. 01.08.2023.
Penalty for non generation of GST E invoice – 100% of the tax due or Rs. 10,000, whichever is higher, for every invoice.
GST E invoice is mandated by the Indian government for businesses with a turnover of more than Rs. 10 crores. This rule was introduced in April 2020 as part of the Goods and Services Tax (GST).