In a recent update, a government official revealed plans to mandate electronic or e-invoices for B2C transactions within the next 2-3 years. Presently, businesses with a turnover exceeding Rs 5 crore are obligated to generate e-invoices for B2C transactions.
The government aims to extend this requirement to B2C transactions, necessitating an upscale of GST systems.
According to a GST Official at CBIC, the process involves upscaling GSTN capacities and implementing systems to accommodate B2C transactions under e-invoicing. While still a work in progress, the official expressed optimism about the eventual implementation of this initiative.
Businesses with turnovers ranging from Rs 5-10 crore have been noted for incomplete adherence to e-invoicing, prompting CBIC officers to encourage compliance. The official emphasized the advantages of e-invoicing, such as ease of doing business and streamlined processes like GSTR-1 and e-way bills.
The government has been progressively making e-invoices mandatory for businesses. Initially applicable to companies with turnovers exceeding Rs 500 crore from October 1, 2020, the mandate extended to those with turnovers over Rs 100 crore from January 1, 2021.
From April 1, 2021, companies with turnovers exceeding Rs 50 crore were included, and the threshold further decreased to Rs 20 crore from April 1, 2022. From October 1, 2022, the threshold was lowered to Rs 10 crore, and as of August 1, 2023, businesses with Rs 5 crore turnovers are required to comply with e-invoicing regulations.
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