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March 10, 2021
2021-0527

India's reduced threshold for e-invoicing applies from 1 April 2021

A recent Notification1 issued by India's Central Board of Indirect Taxes and Customs (CBIC) reduces the turnover threshold for e-invoicing for Goods and Services Tax (GST).

With effect from 1 April 2021, e-invoicing will be mandatory for all taxpayers that have aggregate turnover exceeding INR500 million (approximately US$6.85 million) in any preceding financial year from 2017-18 onwards.

Earlier, the said threshold was reduced from INR5 billion to INR1 billion with effect from 1 January 2021.

With the e-invoicing implementation date for lower turnover approaching soon, businesses may need revise their processes and IT systems to enable compliance with the new invoicing regulation.

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For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (India), India VAT Team

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ENDNOTE

1 Notification No. 5/2021-Central Tax dated 8 March 2021.

 

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