Businesses with a turnover of more than Rs 20 crore will have to generate electronic invoices for B2B transactions from April 1. The Central Board of Indirect Taxes and Customs has given this information.
Businesses with a turnover of more than Rs 20 crore (Business) Electronic Invoice for B2B Transactions from 1st April (E-Invoice) will have to generate. The Central Board of Indirect Taxes and Customs has given this information. goods and services Tax (GST) Under the law, business to business from 1 October 2020 for companies with a turnover of more than Rs 500 crore (B2B) E-invoicing was made mandatory for transactions. This was later implemented from January 1, 2021, for those companies whose turnover is more than Rs 100 crore.
From April 1 last year, companies with a turnover of more than Rs 50 crore were generating B to B invoices. It is now being extended to companies with a turnover of more than Rs 20 crore. With this, more than 1 April 2022 suppliers will be required to generate e-invoices. If the invoice is not valid, then the person will not be able to take input tax credit on it except for a suitable penalty.
According to a PTI report, Bipin Sapra, tax partner at EY India, said that with this move, the government has taken compliance automation to a large number of taxpayers, which will not only make compliance easier, but also reduce the risk of input tax credit fraud. The loss of revenue due will also be less.
At the same time, Rajan Mohan, Senior Partner, AMRG & Associates says that the SME sector will have to implement this change soon, due to which companies may also have to change many standard operating procedures.
What are the benefits of invoicing?
Let us tell you that under the invoicing, the taxpayers have to generate the bill through their internal system and the information has to be given to the Online Invoice Registration Portal (IRP). Under the e-invoice billing system, bills of the same format will be generated at all places in the invoice system in a particular way. These bills will be made uniformly everywhere and will be visible in real time. In the electronic invoice billing system, each head will be written in a standard format.
The biggest advantage of this will be that after making the bill, filing will not have to be done at many places. There is a separate invoice entry for filing GST returns every month. There is a separate entry for filing annual return and separate entry has to be made for generating e-way bill. Now there is no need to file separately.