The Central Board of Indirect Taxes and Customs (CBIC) on Tuesday notified that GST e-invoicing will be mandatory for any firm whose turnover exceeds Rs 100 crore from January 1, 2021. The limit set earlier was a turnover of Rs 500 crore.
“In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely:-
In the said notification, in the first paragraph, with effect from the 1st day of January, 2021, for the words ‘five hundred crore rupees’, the words ‘one hundred crore rupees’ shall be substituted,” said the notification.
The changes will bring a large number of medium enterprises under the ambit of e-invoicing. It is expected that it will be made available to all taxpayers for B2B transactions from 1st April 2021.
“Inclusion of dealers with turnover between INR 100-500 Cr, within the E-invoicing gamut, is another step towards formalisation of the economy. There could be some initial hiccups in implementation, albeit, in the long run the same is likely to result in more transparency, better tax administration and automation of tax compliance and filings,” said Harpreet Singh, Partner, Indírect taxes, KPMG India.
The electronic invoicing system for business to business transactions was implemented on a mandatory basis for companies with turnover above Rs 500 crore from October 1.
Published On : 11-11-2020
Source : The Economic Times