If your turnover is more than five crores, then know these rules of GST!
As of now, e-invoicing is mandatory only for companies with a turnover of 20 crores or more.
The government is making changes in GST every day. In this sequence, the government is considering another major change in GST. Under this, it will be made mandatory for companies with a turnover of more than 5 crores to generate GST e-invoice.
According to the information, officials associated with GST say that the government is going to increase the scope of mandatory e-invoicing to prevent tax evasion and streamline the system. As of now, e-invoicing is mandatory only for companies with turnover of 20 crores or more. Officials associated with the GST Network (GSTN) say that this scope will be reduced in two phases. In the first phase, e-invoicing will be made mandatory for companies with a turnover of 10 crores or more. Then this threshold A will be reduced to Rs 5 crore annually. On October 1, 2020, the government made it mandatory for companies with a turnover of up to 500 crores. After this, it was reduced to 100 crores on January 1, 2021, while again on April 1, 2021, the turnover was fixed to 50 crores. On April 1, 2022, its scope was again reduced to 20 crore turnover.
According to GSTN, currently there are 2.19 lakh GST identification numbers with turnover of 20 crore to 50 crore, but only 1.53 lakh generate invoice2 of these. Similarly, there are 86,963 GSTINs in 50-100 crore turnover, out of which only 48,217 generate invoices. In this regard, the government said that by reducing the threshold of GST invoices, tax evasion will be curbed and buyers will get the benefit of input tax credit. It will be easier for them to claim ITC and its process will also be completed soon. This means that implementing e-Invoice on this low turnover will prove to be a profitable deal for both the business and the government. Explain that the GST Network has said that the new system will be implemented in the next three to four months. All companies and businessmen will be required to generate an invoice on their internal system or billing software for claiming Input Tax Credit (ITC) and report the same on the Invoice Registration Portal.
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