Now it will be necessary to generate e-invoices for companies registered in GST with an annual turnover of Rs 10 crore or more. It will be implemented from October 1. This will be mandatory for companies that do BTUB (business-to-business) business.
The Finance Ministry said, at present, it is necessary to generate e-invoices for companies with a turnover of Rs 20 crore and above. The Central Board of Excise and Customs issued a notification in this regard on August 1. The GST Council had decided to implement e-invoicing in a phased manner. The CBIC said, after the implementation of this system, there will be no need for the tax authorities to reconcile bills under GST for all companies on B2B transactions. Under the arrangement in the future, the businessmen will get all the return forms pre-filled.
There was a rule for Rs 500 crore in 2020
With effect from October 1, 2020, B2B transactions were made mandatory for those companies whose turnover was Rs 500 crore. On January 1, 2021, its scope was expanded to include companies with a turnover of 100 crores. Companies with a turnover of Rs 50 crore from April 2021 and Rs 20 crore from April 1 this year were also included in this purview.
5 crore companies can also come under the ambit
CBIC plans to bring companies with turnover up to Rs 5 crore under its ambit in the future. MS Mani, Partner, Deloitte India, said the decision will further expand the tax base of GST. Also, tax authorities will get more data to enable better compliance. However, going forward, it will be mandatory for all categories of GST taxpayers.
Preparation to remove the 12 percent tax slab
According to sources, the Group of Ministers is contemplating removing the 12 percent tax slab from the GST. The 12 percent slab contributes only 8 percent to the total revenue of GST, so it can be done away with. The Group of Ministers was given 3 months in June to submit its report on this. Fruit juices, almonds, solar water heaters, and other items come in the 12 percent slab.