E-invoicing could be mandatory from Jan-23 for sales above 5Cr The official said the target is to bring all businesses with turnover above ₹1 crore..
E-invoicing could be mandatory from Jan-23 for sales above 5Cr
Businesses with an annual turnover of over ₹5 crores will have to move to e-invoicing under goods and services tax (GST) from January 1. The GST Network has asked its technology providers to make the portal ready to handle the increased capacity by December, a government official privy to the development, told ET.
The official said the target is to bring all businesses with turnover above ₹1 crore under this framework by the next fiscal year, which will further plug revenue leakages and improve compliance.
The GST Council had decided to implement electronic invoices in a phased manner. The aim is to bring all the small businesses under the formal economy. “As per the GST Council recommendation, e-invoicing will become mandatory for businesses over ₹5 crore turnover from January 1,” the official said.
E-invoicing uses a standardised format that a machine can read.
It would help in syncing the sales data of a small business vendor and large corporate clients, which is used to claim the tax credits. This, the official said, would help in the swift detection of false ITC claims, broaden the GST base and improve compliance.
From October 1, businesses having aggregate annual turnover of Rs 10 crore and above have moved to e-invoicing for business-to-business (B2B) transactions.
E-invoicing for B2B transactions was first made compulsory for companies with a turnover of ₹500 crores from October 1, 2020.
This threshold was then lowered for businesses with a turnover of ₹100 crores from January 1, 2021, onwards and again was revised for companies having a turnover of ₹50 crores from April 1, 2021. From April 2022, it was extended to businesses with turnover above ₹20 crores.
Source from: https://economictimes.indiatimes.com/news/economy/policy/e-invoices-must-for-businesses-with-over-5-crore-turnover-a-year/articleshow/94770329.cms?from=mdr
The official said the target is to bring all businesses with turnover above ₹1 crore under this framework by the next fiscal year, which will further plug revenue leakages and improve compliance.
The GST Council had decided to implement electronic invoices in a phased manner. The aim is to bring all the small businesses under the formal economy. “As per the GST Council recommendation, e-invoicing will become mandatory for businesses over ₹5 crore turnover from January 1,” the official said.
E-invoicing uses a standardised format that a machine can read.
It would help in syncing the sales data of a small business vendor and large corporate clients, which is used to claim the tax credits. This, the official said, would help in the swift detection of false ITC claims, broaden the GST base and improve compliance.
From October 1, businesses having aggregate annual turnover of Rs 10 crore and above have moved to e-invoicing for business-to-business (B2B) transactions.
E-invoicing for B2B transactions was first made compulsory for companies with a turnover of ₹500 crores from October 1, 2020.
This threshold was then lowered for businesses with a turnover of ₹100 crores from January 1, 2021, onwards and again was revised for companies having a turnover of ₹50 crores from April 1, 2021. From April 2022, it was extended to businesses with turnover above ₹20 crores.
Source from: https://economictimes.indiatimes.com/news/economy/policy/e-invoices-must-for-businesses-with-over-5-crore-turnover-a-year/articleshow/94770329.cms?from=mdr
COMMENTS