GSTN issued Advisory on Update on Enablement Status for Taxpayers for e-Invoicing

The Goods and Services Tax Network(GSTN) has issued advisory on Update on Enablement Status for Taxpayers for e-Invoicing.

It is to inform that as per Notification No. 10/2023 – Central Tax dated 10th May 2023, the threshold for e-Invoicing for B2B transactions has been lowered from 10 crores to 5 crores. This change will be applicable from 1st August 2023.

To this effect GSTN has enabled all eligible taxpayers with an Aggregate Annual Turnover (AATO) 5 crores and above as per GSTN records in any preceding financial year for e-Invoicing. These taxpayers are now enabled on all six IRP portals including NIC-IRP for e-Invoice reporting. You can check your enablement status on the e-Invoice portal.

It would be in the interest of trade to register and utilize the sandbox testing facility available at the IRP portals. This will help taxpayers to familiarize themselves with the invoice reporting mechanism and ensure a seamless transition to the e-Invoice system.

Please keep in mind that the e-Invoice portal’s enabling status does not imply that taxpayers are legally required to utilise e-Invoicing. However, real responsibility to create IRN must be examined by taxpayers in light of circumstances relevant to them.

While the list of enabled GSTINs is based only on the turnover criteria stated in GSTR-3B, taxpayers must validate if they meet the parameters outlined in the notification/rules. As a result, it is the legal obligation of the taxpayer in question, both purchasers and suppliers, to guarantee compliance.

In case, a taxpayer who is otherwise but not auto enabled on the e-Invoice portal, can self-enable for e-Invoicing using the functionality provided on the portal.

GSTN once again emphasises that all eligible taxpayers should familiarize themselves with the e-Invoicing requirements and take the necessary steps to ensure compliance with the new threshold.