From August 1, 2023, e-invoicing becomes mandatory for businesses with a turnover of more than Rs 5 crore, according to the new GST regulations. This move is a significant step down from the previous threshold of Rs 10 crore, reflecting the government’s ongoing efforts to enhance GST collection and reduce tax evasion.
E-invoice reduces the chances of mistakes in bill generation and no correction can be made after the e-invoice is generated. Along with this, the government gets information about the sale of goods immediately and the sale made by it cannot be hidden.
Currently e-invoices are for such Businesses whose turnover is more than 10 crores.
E-invoice has been implemented by the Government in a phased manner, from October 1, 2020, it was mandatory for companies with an annual turnover of more than Rs 500 crore to generate e-invoice. Thereafter, from January 1, 2021, by reducing the turnover limit for e-invoice 100 crores has been made. After this, from 1 April 2021 it was increased to Rs 50 crore and then to Rs 20 crore on April 1, 2022, to Rs 10 crore from October 1, 2022 and now on August 1, 2023, businesses with more than five crore turnover will have to make e-invoice by the government.
In future, the turnover limit for issuing e-invoice can be further reduced.
With this decision of the government, the GST collection will further increase.
Conclusion: With the introduction of mandatory e-invoicing for businesses with a turnover above Rs 5 crore, the government aims to increase transparency and efficiency in GST collections. This move forms part of broader efforts to digitize the tax infrastructure, reduce tax evasion, and ensure a more accurate and prompt reporting of transactions. It is essential for businesses to stay updated with these evolving regulations to ensure compliance and avoid potential penalties.
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