It is going to be mandatory for the businessmen with an annual turnover of more than Rs 5 crore registered under GST to generate electronic bill for B2B transactions.
Businessmen registered under the Goods and Services Tax (GST), whose annual turnover is more than five crores, will soon be required to generate electronic bills for B2B transactions between companies. This information has been given by Vivek Johri, Chairman, Central Board of Indirect Taxes and Customs (CBIC) on Thursday, July 7. Earlier this limit was Rs 20 crore. According to Johri, the GST Council headed by Finance Minister Nirmala Sitharaman had decided to implement it in a phased manner. The finance ministers of the states are also included in this council.
After implementation, the need for reconciliation of bills will end
Speaking at an event organized by industry body PHDCCI, Johri said that earlier this limit was very high and now it will soon cover all taxpayers with annual turnover of more than Rs 5 crore and they will have to generate e-bills for B2B business. . The biggest advantage of this will be that after the implementation of e-invoicing, tax officers will not need to tally bills under GST for every B2B transaction. Along with this, Johri also said that preparations are being made to bring such a system that all the returns are already filed and the businessmen will have to complete the filing by matching them at just one glance.
Initially the cut-off was Rs 50 crore and now Rs 20 crore
Under GST, from October 1, 2020, it was made mandatory for companies with an annual turnover of more than Rs 500 crore to generate e-bills for B2B transactions. After this, from January 1 next year, it was implemented for companies with a turnover of more than Rs 100 crore. Then in 2021 last year from April 1, companies with a turnover of more than Rs 50 crore were brought under this purview and now from April 1 this year, this limit was increased to Rs 20 crore. Currently, companies with a turnover of more than Rs 20 crore have to generate e-invoice for B2B transactions.