GST registered companies with annual turnover of Rs 10 crore or extra should generate e-invoices for B2B transactions from October 1, the finance ministry mentioned.
Currently, companies with turnover of Rs 20 crore and above are required to generate digital bill for all B2B transactions.
The Central Board of Indirect Taxes and Customs (CBIC) on August 1 notified reducing the e-invoice threshold to Rs 10 crore and above from October 1. The GST Council, comprising finance ministers of Centre and states, had determined to implement digital bill in a phased method.
Under Goods and Services Tax (GST) regulation, e-invoicing for business-to-business (B2B) transactions was made obligatory for firms with turnover of over Rs 500 crore from October 1, 2020, which was then prolonged to these with turnover of over Rs 100 crore efficient January 1, 2021.
From April 1, 2021, firms with turnover of over Rs 50 crore have been producing B2B e-invoices, and the brink was introduced right down to Rs 20 crore starting April 1, 2022.
Going ahead, The CBIC plans to additional decrease the brink for e-invoice era to Rs 5 crore.
Deloitte India Partner MS Mani mentioned it will additional broaden the GST tax base and supply extra information to the tax authorities enabling higher 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,” Mr Mani added.
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