From October 1, businesses with a turnover of Rs 10 crore must use GST E-Invoices.
GST e-Invoice Rules
E-invoicing will become essential for enterprises having an aggregate revenue of Rs 10 Crore or more under the Goods and Services Tax, or GST system, on October 1. The government has reduced the limit from Rs 20 crore to Rs 10 crore in order to combat revenue leakage and guarantee improved tax compliance by enterprises.
“In the aforementioned regulation, in the first paragraph, with effect from the 1stday of October, 2022, the words “twenty crore rupees” shall be substituted for the words “ten crore rupees,” said the Central Board of Indirect Taxes and Customs (CBIC) in a notification dated August 1, Monday. According to the statement, the rules were notified based on the GST Council’s recommendations.
What Does This Mean for Business?
According to experts, the Central Board of Indirect Taxes and Customs (CBIC) statement concerning the mandatory e-invoice for businesses will improve tax compliance and is a step toward making it necessary for all GST taxpayers.
“Reducing the e-invoicing barrier to Rs.10 crore will broaden the GST tax base and provide more data to tax authorities, allowing for improved compliance.” According to MS Mani, partner at Deloitte India, “the steady reduction of the e-invoicing threshold indicates that, over time, e-invoicing would become essential for all categories of GST taxpayers.”
Read More: Did you miss the ITR 2021-22 deadline? Here’s what you should do next.
This action will also ensure that smaller vendors that must comply with this rule do not lose their input tax credit.
“The reduction in the e-invoicing threshold is consistent with the government’s aim to reduce the threat of GST fraud and improve compliance.” This would also imply that large corporations must ensure that their smaller contractors comply with the mandate in order to avoid losing input credits.”
“According to the Deloitte GST Survey@5, 90% of CXOs polled said GST adoption was a positive move.” It is only reasonable that the tax administration will now want to extend GST throughout the entire sector. As a result, the industry will welcome the reduction of the obligatory E invoicing requirement from Rs 20 crore to Rs 10 crore.”
“The 45th GST council meeting acknowledged the need for revenue augmentation, with tax policy initiatives favoured over administrative interventions.” We may see more of these tax policy initiatives that not only increase revenue but also provide clarity to the GST law.”
The post From October 1, businesses with a turnover of Rs 10 crore must use GST E-Invoices. appeared first on Certicom.
This post first appeared on Startup Company Registration | Procedures | Contact Experts | Certicom, please read the originial post: here
