The CBIC had informed about the changes in the GST Taxpayers with aggregate turnover of over Rs 5 crore in any financial year. Earlier, companies with annual revenue of ₹10 crore or above were required to generate e-invoices.
The Central Board of Indirect Taxes and Customs (CBIC) has notified the changes in the Goods and Services Tax (GST) Act, coming into effect from August 1, making it mandatory for companies with a B2B transaction value of ₹5 crore to produce an electronic invoice.
On Friday, the CBIC had informed about the changes in the GST Taxpayers with aggregate turnover of over Rs 5 crore in any financial year. Earlier, companies with annual revenue of ₹10 crore or above were required to generate e-invoices.
The notification for the lower threshold businesses was released by the CBIC in May.
Boon for MSME sector
Experts believe that a change in the e-invoice rule bringing in companies with lesser turnover can help boost the MSME business.
This will benefit the overall business ecosystem by reducing costs, rationalising errors, ensuring faster invoice processing, and also limiting commercial disputes in the long term.
Reducing the threshold limit, from ₹10 crore to ₹5 crore, will be helpful for the GST department in raising revenue and tackling tax evasion.
E-invoicing history
It is to be noted that the e-invoicing was implemented in 2020 for large companies with a turnover of more than Rs 500 crore. It was lowered for those with annual revenues over Rs 100 crore starting on January 1, 2021.
Later, companies that had a turnover of more than Rs 50 crore started producing B2B e-invoices from April 1, 2021, which was further reduced to Rs 20 crore. On October 1, 2022, the threshold was further reduced to Rs 10 crore.
Within 3 years, the threshold has now been lowered to Rs 5 crore.
The GST council is likely to meet on August 2, to finally decide the implementation of GST on online gaming.
It will also decide whether the 28% GST will be levied on the deposits or on every game.
On Monday, the Ministry of Finance informed that the monthly average gross GST collection for the FYs 2021-22 and 2022-23 have shown 30% and 22% year-on-year growth respectively.