Centre to mandate e-invoice for B2C transactions in 2-3 years

Last updated: 07 December 2023

Government Eyes Mandatory E-Invoicing for B2C Transactions in Next 2-3 Years

In a significant development, the government is considering the implementation of mandatory electronic or e-invoices for Business-to-Consumer (B2C) transactions within the next 2-3 years, according to a statement by Central Board of Indirect Taxes & Customs (CBIC) member GST, Shashank Priya, on Wednesday.

As of now, businesses with a turnover of Rs 5 crore and above are obligated to generate e-invoices for their Business-to-Business (B2B) transactions. The government now intends to extend this requirement to B2C transactions, necessitating an upscale of the Goods and Services Tax Network (GSTN) capacities.


Priya emphasized that the expansion of e-invoicing to B2C is a work in progress, with efforts directed towards identifying sectors where its implementation can commence first. Speaking at a National Conference on GST, Priya highlighted that businesses with a turnover between Rs 5-10 crore are still not fully compliant with e-invoice generation, and CBIC officers are actively encouraging non-compliant businesses to adopt the system.

The phased implementation of e-invoicing has been part of the government's strategy. Initially, it was made mandatory for B2B transactions for companies with a turnover exceeding Rs 500 crore from October 1, 2020. Subsequently, the threshold was progressively lowered to cover companies with turnover above Rs 100 crore (January 1, 2021), Rs 50 crore (April 1, 2021), Rs 20 crore (April 1, 2022), and finally, Rs 10 crore (October 1, 2022).

The most recent development, effective August 1, 2023, extends the e-invoicing requirement to businesses with a turnover of Rs 5 crore, marking a significant step towards broader adoption and integration of electronic invoicing in the Indian business landscape. As the government continues its push towards digital transformation in taxation, businesses are expected to adapt to these changes, bringing about increased efficiency and transparency in transactions.

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