GST collections see 8.9 pc YoY growth at Rs 1.87 lakh crore in October
It is the eighth consecutive month when GST collections stayed above the Rs 1.7 lakh crore mark.
The government is all set to implement its decision to make GST e-invoicing mandatory for companies with annual turnover of more than Rs 500 crore for their business-to-business transactions starting October 1, 2020.
While the large companies are ready to adapt, there are several small and medium scale industries that have urged the government to not make it mandatory and rather allow voluntary compliance. This difference had raised hope that there would be certain changes/relaxations.
The relief, however, would be there for relatively smaller businesses, as the threshold for mandatory e-invoicing, a step to improve tax compliance, was earlier planned to be kept at Rs 100 crore, is set to be raised to Rs 500 crore on the recommendations of an empowered panel of the Goods and Services Tax (GST) Council.
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The government was set to roll out the e-invoicing on April 1, 2020, but the Centre notified October 1, 2020, as revised date for implementation of e-invoicing.
As per the website of the Good and Service Network ‘e-invoicing’ has many advantages for businesses such as standardisation, interoperability, auto-population of invoice details into GST return and other forms (like e-way bill), reduction in processing costs, reduction in disputes, improvement in payment cycles and thereby improving overall business efficiency.
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