Alerts: Indirect Tax Alert - GST Notification – Mandatory e-invoicing for Taxpayers having aggregate turnover (ATO) of more than INR 50mn

As per Notification no: 13/2020-Central Tax dated 21 March 2020, the Indian government mandated the use of e-invoicing for specified individuals or entities with an annual turnover (ATO) exceeding INR 100 Mn in any financial year from 2017-18 onwards. 

This regulation aimed to bring about uniformity and standardization in invoicing practices while harnessing the advantages of digitalization. The requirement compelled businesses to adopt e-invoicing solutions and adapt to the changing landscape of financial transactions.

In a move to further expand the reach of e-invoicing and encourage its adoption across a broader spectrum of businesses, the Indian government announced a significant change. 

Effective 1 August 2023, the mandatory threshold for e-invoicing will be reduced from INR 100 Mn to INR 50 Mn. This reduction opens up e-invoicing compliance to a larger pool of businesses, making it a critical milestone in the country's journey towards a digital economy.