August 10 2020

India Updates Scope of Mandatory Electronic Invoicing for Certain Taxpayers

Source: IBFD Tax Research Platform News

The Central Board of Indirect Taxes and Customs has updated the scope of the mandatory electronic invoicing (e-invoicing) requirement which will be effective from 1 October 2020.

The following changes were announced in Notification No. 61/2020 – Central Tax of 30 July 2020:

  • taxpayers whose aggregate turnover exceeds INR 5 billion (from the previous limit of INR 1 billion) in a financial year will be required to issue e-invoices; and
  • a special economic zone unit is exempt from the requirement.

The increase in the revenue threshold for mandatory e-invoicing aims to provide relief on compliance requirements for small companies.

Insurance companies, banks, financial institutions, including non-banking financial institutions, goods transport agencies and passenger transportation services, which are covered by different invoicing rules, are exempt from the e-invoicing requirement.