E-invoice mandatory for turnover above 10 crore from October
- The government has widened the ambit of e-invoicing for businesses by lowering the mandatory turnover threshold to Rs10 crore from Rs20 crore under the Goods and Services Tax (GST) regime. The new threshold starts October 1.
- The change aims to digitize a larger number of transactions, increase sales reporting transparency, lessen errors and mismatches, automate data input labor, and boost compliance.
- According to sources, the government will also extend it to companies with a Rs5 crore annual revenue in an effort to stop tax leakage and simplify compliance.
- In accordance with the GST Council's recommendations, the Central Board of Indirect Taxes and Customs (CBIC) notified the rule late on Monday. It modifies the present threshold.
- E-invoicing (also known as electronic billing) became necessary for businesses with a revenue of at least Rs500 crore in October2020. In 2021, this threshold was lowered to Rs.100 crore for business-to-business (B2B) transactions, and then to Rs.50 crore.
- In order to be eligible for input tax credit, taxpayers must produce invoices using their internal system or billing software and then submit them to the invoice registration site (IRP) (ITC).
- According to experts, this decision would also enable the tax authorities to more accurately analyze patterns in the use and abuse of input tax credits across industries and close revenue gaps
Also read detailed guide and FAQ's On GST E-Invoicing.
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