With a recent news report, the stand of the Government is believed to be very certain on the future of applicability of the mandatory GST e-invoicing rules.
Economic Times reported on October 10, 2022, quoting a Government official, that the Finance Ministry has asked the Technology providers of GST Website to handle increased capacity of the GST e-invoicing website.
The Government plans to mandate e-invoicing for businesses having turnover above Rs. 5 crores from 01st January, 2023. Further, this limit is proposed to be dropped to Rs. 1 crore from 01st April, 2023. By e-invoicing Government plans to plug leakages in Tax Revenues, broaden Tax base & improve compliance.
With this increase in applicability of e-invoicing, now the MSME businesses, have to gear up for digitizing their invoice generating practices. This little increase in compliance might actually aid the MSMEs in streamlining their books in time and also help them get ITC timely.
A look at the history of applicability of GST e-invoicing:
Applicable w.e.f | Annual Turnover limit |
01st October, 2020 | Rs. 500 crores |
01st January, 2021 | Rs. 100 crores |
01st April, 2021 | Rs. 50 crores |
01st April, 2022 | Rs. 20 crores |
01st October, 2022 | Rs. 10 crores |
01st January, 2023 (proposed) | Rs. 5 crores (proposed) |
01st April, 2023 (proposed) | Rs. 1 crore (proposed) |
Lets connect to understand how your business needs to be ready for the GST e-Invoicing.
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