GST E-Invoice Must for Businesses With Rs 10 Crore Turnover from October 1; What is Means

GST e-Invoice Rules: Starting from October 1, e-invoicing for businesses with an aggregate turnover of Rs 10 crore and above, under the Goods and Services Tax, or GST regime, will become mandatory. The government has lowered the limit from Rs 20 crore at present in a bid to tackle revenue leakage and to ensure better tax compliance from businesses.

“In the said notification, in the first paragraph, with effect from the 1stday of October, 2022, for the words “twenty crore rupees”, the words “ten crore rupees” shall be substituted,” said the announcement made by the Central Board of Indirect Taxes and Customs (CBIC) in a notification date August 1, Monday. The rules have been notified on the basis of the recommendations made by the GST Council, it said.

What Does this Move Mean to Businesses?

According to experts, the announcement made by the Central Board of Indirect Taxes and Customs (CBIC) about the mandatory e-invoice for businesses will ensure better tax compliance and is a step towards making it compulsory for all GST taxpayers.

“The reduction of the e-invoicing to a threshold to Rs.10 crore will further expand the GST tax base and provide more data to the tax authorities enabling better compliance. The progressive reduction of the e-invoicing threshold indicates that, over a period of time, e-invoicing will become mandatory for all categories of GST taxpayers” said MS Mani, partner at Deloitte India.

See also  Anek

The move will also ensure that smaller vendors who have to adhere to this mandate do not lose out on input tax credit.

“Lowering of threshold for e-invoicing is in line with government’s efforts to curb the menace of GST frauds and improve compliance. This would also mean that large corporates will need to ensure that their smaller vendors are adhering to this mandate so they don’t end up losing input credits.” Rajat Bose, partner at Shardul Amarchand Mangaldas & Co told

“The Deloitte GST Survey@5 showed that 90 per cent of the CXOs interviewed, stated GST implementation was a welcome step. It is only natural that the tax administration will now aim to cover the wider economy under GST. Hence this step of reducing the mandatory E invoicing requirement from Rs 20 crore to Rs 10 crore, will be welcomed by the industry,” noted Bela Sheth Mao, partner at Deloitte India.

“The 45th GST council meeting did acknowledge the need for revenue augmentation and the preferred path being via tax policy measures rather than administrative interventions. We may see more such tax policy measures which not only augment revenue but also bring certainty to the GST law,” Mao added.

See also  Fake GST Racket Worth More than Rs 4,500 Crore Busted in Delhi, 1 Held. Know Details

Read all the Latest News and Breaking News here

Source link

We will be happy to hear your thoughts

Leave a reply

%d bloggers like this: