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India lowers e-invoice threshold to 50 Cores

Update; The India e-invoice threshold was lowered to 20 Core 1 April 2022.

The Indian Central Board of Indirect Taxes and Customs has lowered the annual sales threshold for mandatory GST e-invoices. Check VAT Calc’s global live VAT invoice transaction and e-invoice reporting tracker to see where else real-time submissions of invoices is being implemented. With effect from 1 April 2021, e-invoicing will be mandatory for all taxpayers that have aggregate turnover exceeding INR500 million (50 Crores).

India B2B e-invoice rollout Oct 2020 to Apr 2021

The new electronic invoicing regime was introduced on 1 October 2021. The annual sales registration threshold has now been lowered from Rs 500 crore from 1 April 2021. This will affect over 48,000 Goods and Services Tax registered enterprises. These taxpayers account for almost 50% of all GST collections. Testing and registrations for the system began in February 2020.

The following businesses are exempt from the requirement: financial services; located special economic zone; passenger transport services and goods transport brokers.

Under the REAP program, enhancement of GSTR 2A – purchase related tax return usually auto populated when taxpayer files GSTR 1 for outward supplies – and linking of GSTR 1 to GSTR 3B, which is summary return for sales and input tax credit, to create a new form GSTR 2B has been envisaged.

Indian GST was introduced in 2017.

Preparing VAT or GST returns can be challenging.  VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditorintegrated tools.

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