All the businesses with turnover above Rs 1 crore will be brought under this framework by next fiscal year. This target will further fill revenue leakages and improve compliance
Businesses having annual turnover of beyond Rs 5 crore will now have to move to e-invoicing under the roof of goods and services tax (GST) from 1 January. The technology providers have been asked by the GST Network to develop the portal to handle the increased capacity by December, according to a government official.
All the businesses with turnover above Rs 1 crore will be brought under this framework by next fiscal year. This target will further fill revenue leakages and improve compliance, according to official.
Implementation of electronic invoice will be done in phased manner as decide by the GST council. The council targets to bring all the small businesses under the formal economy.
In the process of E-invoicing, the machine reads in a standardised format. This would ease in syncing sales data of a small business vendor and large corporate clients that is used to claim tax credit.
From 1 October, all the businesses having aggregate annual turnover of Rs 10 crore and more, have moved to e-invoicing for business-to-business (B2B) transactions. E-invoicing for companies having turnover of Rs 500 crore was first made compulsory from October 1, 2020 for B2B transactions.
However, such threshold limit was then reduced to businesses with turnover of Rs. 100 crore from 1 January 2021 onwards. This limit was again revised for companies with turnover of Rs. 50 crore from 1 April 2021. And from April 2022, the said provision was extended to businesses having turnover more than Rs 20 crore.