From 1st October, Companies with Rs10 Crore Turnover Mandated To Generate E-invoice
IANS 26 September 2022
Businesses having aggregate annual turnover of Rs10 crore and more will have to compulsorily generate e-invoices for business-to-business (B2B) transactions from 1st October onwards, according to the finance ministry.
 
As of now, businesses with turnover of Rs20 crore and more are required to generate e-invoices for all B2B transactions.
 
Central board of indirect taxes and customs (CBIC) had on 1st August issued a notification regarding the 1st October deadline and lowering the turnover threshold and making it mandatory for businesses having a turnover of Rs10 crore, to generate e-invoices.
 
It was the decision of the GST (goods and services tax) Council to implement e-invoices for B2B transactions.
 
E-invoicing for B2B transactions was made compulsory for companies with turnover of Rs500 crore 1 October  2020 onwards. This threshold was then lowered to entities with turnover of Rs 100 crore 1 January 2021 onwards.
 
This limit was further downwardly revised to companies having a turnover of Rs50 crore from 1 April 2021 and then to entities having turnover of Rs20 crore 1 April 2022 onwards.
 
One of the key benefits of this reduction in threshold of turnover limits is that it will gradually increase the GST tax base. It would also lead to less paperwork, seamless transmission of invoices and will also lead to auto-generation of e-way bills.
 
Sources said that e-invoices bear a unique invoice reference number which is generated through invoice registration portal. This leads to reduction in transcriptional errors and automatic reporting to GST portal.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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