Important Update on GST Rule Impacting Indian Companies Effective From Today - New Threshold
Companies engaged in B2B transactions and having a transactional value exceeding Rs. 5 Crore will be obligated to generate electronic or e-invoices. Furthermore, for all B2B transactions, companies with annual revenue of Rs. 10 Crores or more are currently required to generate electronic invoices.
- #GST rule update
- # Indian companies
- # new threshold
- # effective today
- # impact
- # implications
- #article
- # news
- # notifications
- # finance
- # legal
- # tax updates
- # myitronline
- # itr
- # filing now with myitronline
- # free itr filing
- # tax save itr filing
- # maximum tax save
- # best itr services
- # best itr filing
Important Update on GST Rule Impacting Indian Companies Effective From Today - New Threshold
Companies engaged in B2B transactions and having a transactional value exceeding Rs. 5 Crore will be obligated to generate electronic or e-invoices. Furthermore, for all B2B transactions, companies with annual revenue of Rs. 10 Crores or more are currently required to generate electronic invoices.
Effective from today, there is a new GST threshold for businesses with a turnover exceeding Rs.5 crore. In May, the Ministry of Finance issued a circular concerning the Goods and Services Tax (GST) system, which stated that businesses with a turnover of over Rs. 5 crore will be mandated to generate e-invoices starting from August 1.
Commencing from August 1, companies with a B2B transactional value exceeding Rs. 5 crores will be obligated to generate electronic or e-invoices. Presently, for all B2B transactions, companies must generate an electronic invoice if their annual revenue amounts to Rs. 10 Crores or more.
The implementation of e-invoicing began in 2020, initially targeting large companies with a turnover exceeding Rs 500 crore. Surprisingly, within just three years, the threshold has been significantly reduced to Rs 5 crore.
Under the GST law, e-invoicing became mandatory for business-to-business (B2B) transactions for companies with annual revenues over Rs 500 crore, effective from October 1, 2020, and subsequently for those with annual revenues over Rs 100 crore, starting January 1, 2021.
From April 1, 2021, companies with a turnover exceeding Rs 50 crore were required to produce B2B e-invoices. The threshold was further reduced to Rs 20 crore from April 1, 2022, and eventually to Rs 10 crore from October 1, 2022.
According to Srivatsan Sridhar, Founder, and CEO of Skydo, the implementation of e-invoicing by the government aims to combat tax evasion and facilitate real-time invoice matching between clients and vendors.
This crucial step ensures transparency and enhances compliance by modernizing the tax collection system, leading to a broader GST base. E-invoicing offers numerous benefits, including real-time validation and matching of invoices between buyers and sellers, effectively reducing the chances of errors, duplication, and tax evasion.
Despite the advantages of e-invoicing, there are also some drawbacks and challenges to consider. For small businesses, the initial setup costs can be a barrier as it requires investment in hardware, technology, software, and training. Additionally, the transmission and storage of sensitive financial data pose potential risks of cyber threats and hacking attempts, which should be taken into account.
On another note, the GST council is expected to convene on August 02 to make a final decision on implementing GST on online gaming. They will also determine whether the 28% GST will be levied on deposits or on every game. Concerns have been raised about repeated taxation of the same rupee, potentially leading to an effective tax rate as high as 50%-70%.
Also Read: ITR Filing Deadline Update: No Extension Granted, Challenges Faced, and Solutions for Belated Filers
FILING YOUR INCOME TAX RETURN F.Y 2022-23 (A.Y. 2023-2024) WITH MYITRONLINE
Income tax filing deadline is right around the corner. If you haven’t filed yet, do it now for FREE on Myitronline! Avoid last minute rush and file your tax return today on MYITRONLINE in Just 5 mins.(www.myitronline.com)
If you are looking for eCA assistance to file your income tax return/ GST, you can opt for MYITRONLINE eCA assisted plan starting
Upload Salary Individual Form-16
If you have any questions with filing your tax return, please reply to this mail. info@myitronline.com OR call 9971055886.
Note-All the aforementioned information in the article is taken from authentic resources and has been published after moderation. Any change in the information other than fact must be believed as a human error. For queries mail us at marketing@myitronline.com
Krishna Gopal Varshney
An editor at MyitronlinenewsKrishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.