E-invoice turnover limit has been a hot topic of discussion in the GST world. The government is trying to accommodate MSMEs under e-invoicing. Multiple circulars and GST notifications have been released for smooth e-invoice implementation in the country. So, if you are wondering if your business has crossed the e-invoice threshold limit, you have landed on the right page.

Recently, the government decided to lower the e-invoice threshold limit to Rs. 10 Cr. i.e. businesses with an annual aggregate turnover of Rs. 10 Cr. or more in any financial year from 2017-18 onwards need to mandatorily start generating IRN from October 1, 2022 as per GST notification 17/2022.

Sources say that the e-invoice turnover limit is soon going to be even lowered as Taxpayers with turnover above Rs. 5 Cr. are enabled for testing on Sandbox.

What is the turnover limit for e-invoicing?

E-invoice under GST has been introduced in the country in a phased manner based on the Aggregate Annual Turnover (AATO) of companies. Presently the e-invoice turnover limit is Rs. 20 Cr. which is soon going to be lowered to Rs. 10 Cr. as per GST notification 17/2022. Let us have a look at the table below for a detailed update:

Is e-invoice mandatory for Rs. 5 crores?

No, it is not mandatory for companies with an annual turnover of Rs. 5 crores to generate e-invoices currently. However, testing on Sandbox is available to taxpayers with a turnover of between Rs. 5 Cr. and Rs. 20 Cr.

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IRIS is now a GSTN-authorised IRP – Invoice Registration Portal

With the expansion in the scope of the e-invoicing mandate, IRIS has been appointed as the Invoice Registration Portal (“IRP Partner”) of GSTN, which permits us to act on behalf of GSTN to register B2B e-Invoices of trade and industry. IRIS IRP can now help taxpayers and solution providers to generate IRN for B2B invoices, credit notes and debit notes smoothly.