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[F. No. CBIC- 20021/1/2022-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 24th February, 2022
Notification No. 01/2022 – Central Tax: Seeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 20 Cr from 01st April 2022.
Table of Contents
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R (E).- In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely:-
In the said notification, in the first paragraph, with effect from the 1st day of April, 2022, for the words “fifty crore rupees”, the words “twenty crore rupees” shall be substituted.
(Rajeev Ranjan)
Under Secretary to the Government of India
Note: The principal notification No. 13/2020 – Central Tax, dated the 21st March, 2020 was published in the Gazette of India, Extraordinary, vide number G.S.R. 196(E), dated 21st March, 2020 and was last amended vide notification No. 23/2021-Central Tax, dated the 1st June, 2021, published vide number G.S.R. 367(E), dated the 1st June, 2021.
📚 Frequently Asked Questions (FAQs): Notification No. 01/2022 - Central Tax
Q1: What is Notification No. 01/2022 – Central Tax about?
Answer:
Notification No. 01/2022 – Central Tax, issued on 24th February 2022, reduces the e-invoicing threshold limit from ₹50 Crore to ₹20 Crore. This means, from 1st April 2022, businesses having an Aggregate Annual Turnover (AATO) of more than ₹20 Crore must generate invoices through the e-invoicing system under Rule 48(4) of the CGST Rules, 2017.
Q2: From when is this notification applicable?
Answer:
The notification comes into effect from 1st April 2022. Businesses crossing the turnover threshold of ₹20 Crore in any financial year are required to comply with mandatory e-invoicing from this date.
Q3: What was the e-invoicing threshold before this notification?
Answer:
Earlier, the threshold for mandatory e-invoicing was ₹50 Crore. Notification No. 01/2022 – Central Tax amended it to ₹20 Crore, thereby widening the scope of taxpayers covered.
Q4: Why was the turnover threshold reduced from ₹50 Cr to ₹20 Cr?
Answer:
The reduction aims to improve GST compliance, curb tax evasion, and ensure greater transparency in business transactions. It also encourages faster digital adoption among medium-sized businesses.
Q5: How does e-invoicing benefit taxpayers?
Answer:
✅ Simplifies invoice reporting with real-time validation
✅ Reduces errors and mismatches in GST returns
✅ Auto-populates GSTR-1 and GSTR-3B
✅ Helps businesses avoid penalties by ensuring compliance
✅ Builds trust with vendors and government systems
For smooth GST Compliance, explore Finodha’s GST services.
Q6: Who needs to comply with this notification?
Answer:
Any taxpayer whose Aggregate Annual Turnover (AATO) exceeds ₹20 Crore in any previous financial year is required to comply with e-invoicing provisions.
Q7: Does this notification apply to all types of businesses?
Answer:
No. Some entities are exempted from e-invoicing such as:
SEZ units
Insurance companies
Banks
NBFCs
Goods transport agencies (GTA)
Passenger transportation services
Cinema exhibition services
Q8: What are the penalties for non-compliance?
Answer:
Non-compliance with e-invoicing provisions may lead to:
Invoice being treated as invalid under GST law
Penalty of up to ₹25,000 per invoice
Issues in claiming Input Tax Credit (ITC)
Q9: How can businesses prepare for mandatory e-invoicing?
Answer:
Businesses should:
Update accounting and billing software to align with IRP (Invoice Registration Portal).
Train staff for digital invoicing processes.
Ensure real-time validation with GSTN.
Partner with a GST Expert to avoid compliance errors.
Q10: What should medium businesses do now?
Answer:
Medium businesses with turnover above ₹20 Cr must immediately implement e-invoicing. Finodha offers expert assistance in GST Registration, GST Return Filing, and end-to-end compliance support.
Download PDF: Notification No. 01/2022 - Central Tax
More Information: https://taxinformation.cbic.gov.in/
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