The authorities has widened the ambit of e-invoicing for companies by reducing the obligatory turnover threshold to Rs 10 crore from Rs 20 crore below the Goods and Services Tax (GST) regime. The new threshold begins October 1.
The transfer is geared toward digitising the next quantity of transactions, transparency in gross sales reporting, decreasing errors and mismatches, automating information entry work, and bettering compliance.
Sources mentioned the federal government will additional prolong it to entities with a turnover of Rs 5 crore, searching for to plug income leakage and ease compliance.
The Central Board of Indirect Taxes and Customs (CBIC) notified the rule late Monday amending the present threshold in line with the suggestions of the GST Council.
‘(*10*) Standard’ reported on July 4 in regards to the authorities’s plans to make GST e-invoicing obligatory for firms with a turnover of Rs 10 crore after which Rs 5 crore within the present monetary 12 months.
E-invoicing (digital billing) began in October 2020 and was made obligatory for entities with a turnover of Rs 500 crore and above. This threshold was introduced all the way down to Rs 100 crore and later to Rs 50 crore in 2021 for business-to-business (B2B) transactions.
Taxpayers must generate invoices on their inner system or billing software program after which report them to the bill registration portal (IRP)–a requirement to get enter tax credit score (ITC).