GST New Rule; Under the Goods and Services Tax, the new rule is going to be implemented from August 1. This new rule will be applicable to companies with a turnover of Rs 5 crore.
Under the Goods and Services Tax (GST), new rules are going to be implemented from August 1. This new rule is related to companies whose turnover is 5 crores or more. Earlier this new rule was applicable to annual turnover of Rs 10 crore or more, but now it has been reduced to half.
As per GST guidelines, it is mandatory for companies with B2B transaction value of Rs 5 crore to issue electronic invoices. On July 28, the Central Board of Indirect Taxes and Customs had informed about the change in the rule by tweeting.
Scope will increase under GST
In its tweet, CBI said that GST taxpayers whose aggregate turnover in any financial year is more than 5 crores, they will have to compulsorily furnish e-invoice for B2B supply or export of goods or services or both from 1st August 2023 . In May, notification was issued by CBIC for businesses with lower limit. This step will help in boosting the collection and compliance under GST.
GST E-Invoice Rules
Experts believe that the change in e-invoice rule and inclusion of companies with low turnover can help in promoting MSME units. According to a PTI report, Deloitte India Partner Leader Indirect Tax Mahesh Jaising said that with this announcement, the scope of MSMEs under e-invoicing will be expanded and they will be required to implement e-invoicing.
GST revenue will increase
The limit for issuing e-invoice for B2B transactions has been reduced from Rs 10 crore to Rs 5 crore. This will help the GST department in increasing the revenue and will help in dealing with the tax invasion. Apart from this, the government has also focused on tracking and monitoring tax evaders.
