GST: This work will have to be done soon for companies with annual turnover of more than Rs 5 crore, there will be a change in the rules

GST registered businesses with annual turnover of more than Rs 5 crore will soon have to generate electronic invoices for B to B transactions.

GST registered businesses with annual turnover of more than Rs 5 crore will soon have to generate electronic invoices for B to B transactions. A top official has given this information on Thursday.

With an annual turnover of more than Rs 5 crore GST (GST) Registered businesses will soon have to generate electronic invoices for B to B transactions. A top official has given this information on Thursday. Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri said that the GST Council (GST Council)in which the center (Central Government) and state finance ministers, have decided to implement it in a phased manner for every B to B transaction. He said that e-invoice (E Invoice) Once generated, there will be no need to reconcile the invoices under the Goods and Services Tax (GST) by the tax authority.

What are the rules now?

In an event released by industry body PHDCCI, Johri said that they are starting with a very high limit and soon all taxpayers with annual turnover of more than Rs 5 crore will have to generate e-invoice for their B to B transactions.

At present, businesses with a turnover of more than Rs 20 crore have to generate e-invoice for B to B transactions.

Johri said that e-invoicing is revolutionary and no other country exists which has adopted it. He said that its phases will be implemented very gradually. Johri said that he does not want to press the taxpayers under the burden of e-invoicing. He further said that they know that it cannot happen in one fell swoop, so they have implemented it in a phased manner and will bring it down gradually.

Return form will be made easy

Under GST, e-invoicing on B to B transactions was made mandatory from 1 October 2020 for companies with a turnover of more than Rs 500 crore. It was later implemented from January 1, 2021, for companies with a turnover of more than Rs 100 crore.

From April 1 last year, companies with a turnover of more than Rs 50 crore were generating B to B e-invoices. And from April 1, 2022, this limit was reduced to Rs 20 crore.

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Johri also said that in future, the GST system will be developed in such a way that the tax return forms are better. He said it was not too far. They can assure that we will have a system where you just have to look at the returns and click on the button. And it has to be said that yes this is true. And your return filing will be over.