As per Notification No 10/2023 dated 10th May 2023, the threshold limit of E-invoicing turnover has been reduced to 5 crores from 01st August 2023.
As per new rules companies having B2B transactions with the value of 5 crores or more are mandatorily required to produce an electronic invoice.
In case a registered person whose aggregate turnover in any of the preceding financial years is more than 5 crores, then E-invoicing is mandatory from 1st August 1, 2023.
Let’s understand with an Example
| Year | Case 1(TO in Crs) | Case 2( TO in Crs) |
| 2017-18 | 3 | 3 |
| 2018-19 | 5.5 | 4.5 |
| 2019-20 | 4 | 4 |
| 2020-21 | 3.5 | 3.5 |
| 2021-22 | 4 | 4 |
| 2022-23 | 3.5 | 3.5 |
| 2023-24 | 4.5 | 5.5 |
| Applicability | Applicable, as T/O in FY 2018-19 is more than 5 crore, so it is applicable for FY 2023-24 | Not applicable for FY 2023-24 as preceding years’ turnover is not more than 5 cr |