Notification No. 10/2023 – ₹5 Cr E-invoicing Threshold

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Notification No. 10/2023 – Central Tax: Seeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 5 Cr from 01st August 2023.

[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 21^st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21^st March, 2020, namely:-

In the said notification, in the first paragraph, with effect from the 1^st day of August, 2023, for the words “ten crore rupees”, the words “five crore rupees” shall be substituted.

(Alok Kumar)
Director

Note: The principal notification No. 13/2020 – Central Tax, dated the 21^st March, 2020 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated the 21^st March, 2020 and was last amended vide notification No. 17/2022-Central Tax, dated the 1^st August, 2022, published vide number G.S.R. 612(E), dated the 1^st August, 2022.

📚 Frequently Asked Questions (FAQs): Notification No. 10/2023 – Central Tax

Q1: What is the main update under Notification No. 10/2023 – Central Tax?

Answer:
The key update is that the threshold for mandatory e-invoicing under Rule 48(4) of CGST Rules, 2017 has been reduced from ₹10 crore to ₹5 crore. This change is effective from 01st August 2023.

Q2: Who is impacted by this notification?

Answer:
Businesses registered under GST with an aggregate turnover exceeding ₹5 crore in any preceding financial year from 2017–18 onward must now issue e-invoices for B2B transactions.

Q3: What does e-invoicing mean under GST?

Answer:
E-invoicing means the electronic authentication of B2B invoices via the Invoice Registration Portal (IRP). It ensures data accuracy, real-time tracking, and auto-population in GSTR-1.

Q4: What happens if a taxpayer with turnover > ₹5 Cr fails to issue an e-invoice?

Answer:
Non-compliance may lead to rejection of the invoice under GST, resulting in denial of Input Tax Credit (ITC) to buyers and penalties under GST law.

Q5: How can businesses start issuing e-invoices?

Answer:
Businesses can register on the e-invoice portal, integrate their billing system, and start generating Invoice Reference Numbers (IRNs). For seamless compliance, you may consult GST experts from Finodha: www.Finodha.in.

Q6: Is there any exemption for certain entities under this rule?

Answer:
Yes, entities such as SEZ units, insurers, banks, financial institutions, and GTA (Goods Transport Agencies) continue to be exempt from e-invoicing provisions.

Q7: Which GST Notification is amended by this update?

Answer:
Notification No. 13/2020 – Central Tax has been amended to substitute the turnover threshold to ₹5 crore, effective from August 1, 2023.

Q8: How does this update benefit tax administration?

Answer:
It enhances transparency, reduces tax evasion, simplifies reconciliation, and automates return filing processes, aligning with the government’s Digital India initiative.

Q9: Is there a simplified onboarding process for e-invoicing?

Answer:
Yes ✅. Government has introduced multiple e-invoicing portals and APIs. However, SMEs may benefit from compliance advisory. For easy onboarding, check: https://finodha.in/gst-compliance/

Q10: What support does Finodha offer for e-invoicing compliance?

Answer:
Finodha offers:
🧾 GST registration & return filing support: https://finodha.in/gst-return-filing/
🖥️ E-invoice integration & automation
📊 Compliance audit & reconciliation
💼 End-to-end business setup: https://finodha.in/setup-business/