Businesses having combination annual turnover of Rs 10 crore and extra must compulsorily generate e-invoices for business-to-business (B2B) transactions from October 1 onwards, in accordance with the Finance Ministry.
As of now, companies with turnover of Rs 20 crore and extra are required to generate e-invoices for all B2B transactions.
Central Board of Indirect Taxes and Customs (CBIC) had on August 1 issued a notification relating to the October 1 deadline and decreasing the turnover threshold and making it obligatory for companies having a turnover of Rs 10 crore, to generate e-invoices.
It was the choice of the GST Council to implement e-invoices for B2B transactions.
E-invoicing for B2B transactions was made obligatory for firms with turnover of Rs 500 crore from October 1, 2020 onwards. This threshold was then lowered to entities with turnover of Rs 100 crore from January 1, 2021 onwards.
This restrict was additional downwardly revised to firms having a turnover of Rs 50 crore from April 1, 2021 after which to entities having turnover of Rs 20 crore from April 1, 2022 onwards.
One of the important thing advantages of this discount in threshold of turnover limits is that it’ll progressively improve the GST tax base. It would additionally result in much less paperwork, seamless transmission of invoices and also will result in auto technology of e-way payments.
Sources stated that e-invoices bear a singular bill reference quantity which is generated by bill registration portal. This results in discount in transcriptional errors and computerized reporting to GST portal.