GST E-Invoicing Mandatory From January 1, 2021 If Turnover Exceed Rs 100 CR

The Central Board of Indirect Taxes and Customs (CBIC) on Tuesday informed that GST e-invoicing will be required for any firm whose turnover surpasses Rs 100 crore from January 1, 2021. The cutoff set before was a turnover of Rs 500 crore.

“In exercise of the forces presented by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the proposals of the Council, therefore makes the accompanying further revisions in the notice of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, distributed in the Gazette of India, Extraordinary, Part II, Section 3, Sub-area (I) vide number G.S.R. 196(E), dated 21st March, 2020, in particular:-

In the said notice, in the principal passage, with impact from the first day of January, 2021, for the words ‘five hundred crore rupees’, the words ‘one hundred crore rupees’ will be subbed,” said the notice.

The progressions will bring countless medium ventures under the ambit of e-invoicing. It is normal that it will be made accessible to all citizens for B2B exchanges from first April 2021.

“Inclusion of dealers with turnover between INR 100-500 Cr, within the E-invoicing gamut, is another step towards formalisation of the economy. There could be some initial hiccups in implementation, albeit, in the long run the same is likely to result in more transparency, better tax administration and automation of tax compliance and filings,” said Harpreet Singh, Partner, Indírect charges, KPMG India.

The electronic invoicing framework for business to business exchanges was executed on an obligatory reason for organizations with turnover above Rs 500 crore from October 1.

Source: news24nation