The government has widened the ambit of e-invoicing for businesses by lowering the mandatory turnover threshold to Rs 10 crore from Rs 20 crore under the Goods and Services Tax (GST) regime from October 1. The Central Board of Indirect Taxes and Customs (CBIC) on August 1 notified lowering the e-invoice threshold to Rs 10 crore and above.

Rajat Bose, partner, Shardul Amarchand Mangaldas & Co, said: “The lowering of threshold for e-invoicing is in line with government’s efforts to curb the menace of GST frauds and improve compliance. This would also mean that large corporates will need to ensure that their smaller vendors are adhering to this mandate so they don’t end up loosing input credits.”

Deloitte India partner M.S. Mani said this will further expand the GST tax base and provide more data to the tax authorities enabling better compliance.

“The progressive reduction of the e-invoicing threshold indicates that, over a period of time, e-invoicing will become mandatory for all categories of GST tax payers,” Mani added.

Vivek Jalan, partner, tax connect advisory, said: “Those persons with a pan India turnover of even Rs 10 crore will have to generate their invoices from the government’s invoice registration portal (IRP).”

“It is important to note that this threshold limit is the aggregate turnover calculated for all states taken together and will also include stock transfers from one branch of the same person to another branch in another state of the same person,” he said.