The threshold limit for the issue of e-invoices has been reduced from ₹ 50 crores to ₹ 20 crores. Taxpayers who are having turnover above ₹ 20 crores have to issue e-invoices from 1st April 2022 and the recipient can take input tax credit only if the supplier has issued an e-invoice if required else they cannot avail input tax credit.
The taxpayers can verify from here for the eligibility for the issue of e-invoice.
e-invoice is being implemented in India very aggressively compared to other nations across the globe. Within a span of 6 months we could see the changes in the threshold and also the number of e-invoices issued. It all started from 1st Oct 2020 for taxpayers having turnover above Rs 500 Crores. The same has been decreased to Rs 100 Crores from 1st Jan 2021 and now it is further reduced to Rs 50 Crores from 1st April 2021.
The number of e-invoices issued has already crossed 25 crores on 3rd Feb 2021 and the count is increasing.
As per Notification no 5-Central dated 8th March 2021, e-invoice is applicable for taxpayers having turnover above Rs 50 crores. This is a good news compared to the initial talks of Rs 5 crores from 1st April 2021.