Notification No. 10/2023-Central Tax Dated: 10th May, 2023 related to Central Goods and Services Tax Rules, involving a reduction in threshold limit for GST E-Invoicing from ten crore rupees to five crore rupees, effective from August 1, 2023.

Earlier registered person whose turnover exceeds Rs. 10 crore is required to comply with e-invoice provision which means he must generate e-invoice against each tax invoice, debit note, credit note issued to registered person.

Now on 10th May’2023 Ministry of Finance by Notification No. 10/2023 central tax has notified that person registered under GST and having turnover more than Rs. 5 Crore in any financial year from 2017-18 is required to comply with the e-invoice provisions w.e.f. 01st August 2023 i.e., he will be required to generate IRN/e-invoice against followings: –

1. Each tax invoice, debit note & credit note issued to registered person.

2. Export Transactions

Above e-invoice applicable on supply of goods as well as supply of service and this is in addition to the generation of e-way bill.

However, e-invoice 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.

1. Insurance Company

2. Banking Company or a financial Institutions

3. SEZ Units

4. Government Department and Local Authorities

5. Goods Transport Agency.

This phased wise manner of covering the businesses is a welcome move by the Government, instead of simply rolling out its applicability on all the businesses at once. It started with the threshold limit of Rs. 500 crores, then gradually brought down to Rs. 100 Crores, then Rs. 50 crores, then Rs. 20 crores, then Rs. 10 crores, and now finally to Rs. 5 crores (applicable from 1st Aug, 2023).

Lowering this threshold limit will widen the coverage area of Government’s check, as there would be less scope of manipulation in invoices.

Notification No. 10/2023 is as below: –

Ministry Of Finance
(Department Of Revenue)
(Central Board of Indirect Taxes And Customs)
New Delhi

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.

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  1. sai says:

    i need a clarification regarding issue of E invoice more then 5 crore .

    during this financial year (2023-24) i crossed the limit of turnover of 5 crore (i.e., from august 2023) what can i do.
    if i issue e invoice from now inwards or from next financial year
    please suggest me
    thanking you

  2. sivasakthi lvr exports says:

    my business is coconut exports only. since 1981 firm. every year my turnover is more than 25 crores. coconuts are exempted goods in gst act. so I have no gst license. is it applicable of e invoicing above 5 crores effect from 1-8-2023. please clarify

  3. Jigar Punjabi says:

    Is 5 Crore TO figure should include GST or net turnover without GST is to be considered for eligibility of E-Invoicing?

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