The government may take this to a turnover of Rs 5 crore in future to reduce the revenue deficit and ease the process.
If you are a businessman doing 10 crore turnover, then this information related to GST is very important for you. Because from October 1, changes are going to happen regarding e-invoicing under GST. The government has reduced the turnover limit for e-invoicing under the Goods and Services Tax (GST) from Rs 20 crore to Rs 10 crore. This rule will come into effect from October 1 and its main objective is to digitize large transactions, transparency in sales, reduce mistakes, automate and improve data entry work.
According to sources, the government may take it to a turnover of Rs 5 crore in future to reduce the revenue deficit and ease the process. The Central Board of Indirect Taxes Customs (CBIC) issued this order late on Monday night, revising the current limit in line with the recommendations of the GST Council.
GST E-Challan Mandatory
Business Standard had reported on July 4 about the government’s plan to make GST e-invoicing mandatory for companies with a turnover of Rs 10 crore and then Rs 5 crore in the current financial year. E-invoicing (electronic billing) started in October 2020 and was made mandatory for entities with a turnover of Rs 500 crore and above.
This limit was reduced to Rs 100 crore for business-to-business (B2B) transactions and later to Rs 50 crore in 2021. Taxpayers will have to generate the invoice on their system or billing software for this and then report them on the invoice registration portal (IRP). For this input tax credit (ITC) will be required.
Required to generate electronic invoice
Let us tell you that from the beginning of the new financial year i.e. from October 1, 2022, the changes that are going to happen in many such rules will have a direct impact on the common man. According to one such new rule, E-Invoice has been made mandatory from October 1 for companies with a turnover of more than Rs 10 crore under the Goods and Services Tax (GST). According to a circular by the Central Board of Indirect Taxes and Customs (CBIC), all such traders who do B2B business, and whose annual turnover is more than Rs 10 crore, will be required to generate electronic invoices from October 1.
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