Central Board of Indirect Tax: Earlier this limit was Rs 10 crore, which has now been reduced to Rs 5 crore. This arrangement will be applicable from 1st August. Mahesh Jaisingh, Partner, Indirect Taxes – Leader, Deloitte India said that with this announcement, the coverage of Micro, Small and Medium Enterprises (MSMEs) under e-invoicing will increase.
GST Council: A major change has come to the fore in the GST rules. Under the new rule, companies with a turnover of more than five crore rupees will have to issue electronic or e-invoice (invoice) for B2B transactions from August 1. As of now, units with a turnover of Rs 10 crore or more have to generate e-invoices for B2B transactions.
Limit reduced from 10 crores
According to the notification issued by the Finance Ministry on May 10, the limit for issuing e-invoices for B2B transactions has been reduced as compared to earlier. Earlier this limit was Rs 10 crore, which has now been reduced to Rs 5 crore. This arrangement will be applicable from 1st August. Mahesh Jaisingh, Partner, Indirect Taxes – Leader, Deloitte India said that with this announcement the coverage of Micro, Small and Medium Enterprises (MSMEs) under e-invoicing will increase and they will need to implement e-invoicing.
AMRG & Associates Senior Partner Rajat Mohan said the phased implementation of e-invoicing has reduced bottlenecks, improved compliance and increased revenue. E-invoicing was initially implemented for large companies with a turnover of more than Rs 500 crore and within three years this limit has now been reduced to Rs five crore.
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