Important Update: New Invoicing Requirements for Businesses with Turnover Over ₹5 Crore

Simplified Explanation of Notification No. 10/2023-Central Tax

Purpose: This notification amends the requirements for preparing tax invoices for businesses with a specified level of turnover.

Key Points:

1. Amendment to Threshold:
   • Original Requirement: Previously, only registered persons with an aggregate turnover exceeding ₹10 crore in a financial year were required to prepare invoices in a specified format.
   • Revised Requirement: From August 1, 2023, this threshold has been lowered to ₹5 crore. This means businesses with an aggregate turnover exceeding ₹5 crore now need to adhere to specific invoicing rules.
2. Effective Date:
   • This change is effective starting August 1, 2023.
3. Rules Referenced:
   • The amendment affects the requirements set out in Notification No. 13/2020-Central Tax, which pertains to tax invoice preparation under the Central Goods and Services Tax Rules, 2017.

Example: If your business had an aggregate turnover of ₹6 crore in the last financial year and is registered under GST, you will need to comply with the updated invoicing requirements from August 1, 2023. This involves preparing invoices in the prescribed format as per the new threshold of ₹5 crore.