Highlights
Companies with a turnover of Rs 10 crore also came under the ambit of e-invoicing.
E-invoice will be mandatory for these companies from October 1.
Its objective is to further reduce the cases of tax fraud in the GST system.
New Delhi. Now companies with a turnover of Rs 10 crore or more will also have to compulsorily take e-challan. The new system will come into effect from October 1. At present, only companies with annual turnover of more than 20 crores have to get e-invoice made. The Central Board of Indirect Taxes and Customs (CBIC) has given this information by issuing a notification on Monday.
Significantly, the GST Council has decided to implement electronic invoicing in a phased manner. Under GST, e-invoicing on B2B (Business to Business) transactions was made mandatory for companies with a turnover of more than Rs 500 crore with effect from October 1, 2020. Subsequently, the scope of e-invoicing on B2B transactions was also extended to companies with a turnover of Rs 100 crore or more. At the same time, from April 1, 2021, companies with a turnover of Rs 50 crore were also brought under this purview. Further, the CBIC has planned to further reduce the limit for issuance of e-challan to Rs.5 crore.
What is the opinion of experts
Deloitte India’s MS. Mani says reducing the minimum threshold for e-invoicing to Rs 10 crore will further widen the scope of GST. He said that this will make more data available with the Income Tax officials and tax collection will be better. Mani said that the reduction in the minimum limit of e-invoicing in a phased manner shows that all categories of businesses will come under it over a period of time.
Big companies also have to take care
Rajat Bose of Shardul Amarchand Mangaldas & Co has said that the government is making this change to reduce fraud in the tax system. He said that bringing small companies under this purview can certainly improve tax collection, but big companies should also note that their small vendors are following these rules so that their input credit does not suffer.
Second highest GST collection in July so far
In July 2022, there was a total GST collection of Rs 1.49 lakh crore. This is the second largest collection ever since the implementation of the new tax system. Similarly, the GST collection for 5 consecutive months has been more than Rs 1.40 lakh crore.
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Tags: business news, Business news in hindi, Businesses, GST, GST latest news
FIRST PUBLISHED : August 02, 2022, 18:52 IST
