There is an important change for GST which will be applicable from 1st August 2023, know its benefits in detail here…
GST Rule Change: The government has made an important change in the rules of GST. Under which, now it will be mandatory for those having a turnover of more than Rs 5 crore to generate e-invoice for B2B transactions. This change will come into effect from 1 August 2023. Earlier this rule was only for those with a turnover of more than Rs 10 crore. Now this rule will also apply to those with a turnover of more than five crore rupees. This change has been made to promote the use of digital technologies like e-invoice and e-challan.
August 1 rule will be applicable
The Finance Ministry announced on May 10 that from August 1, 2023, under new rules, it will be mandatory for you to generate e-invoices for B2B transactions above Rs 5 crore. This new rule will also apply to traders with a turnover of more than five crore rupees. Explain that this rule has been implemented to promote the tax avenue which is important for the Government of India. Apart from this, following the e-invoicing rules also provides some savings to the companies.
E-challan can be a boon- Mahesh
E-invoicing can be a boon rather than a curse as it directs businesses to carry out their transactions in an easy and secure manner. It also gives businesses an opportunity to reduce taxes as e-invoicing can contribute to their input tax credit – Mahesh Jaisingh, Deloitte India Partner Leader Indirect Tax
Increase in revenue – Rajat Mohan
Phased implementation of e-invoicing has reduced disruptions and improved compliance. Also, there has been an increase in revenue through e-invoicing. Initially this system was implemented for big companies but now within 3 years this limit has been reduced and made available for small companies also- Rajat Mohan, Senior Partner, AMRG & Associates
Benefits of e-invoicing system
- The inclusion of MSME sector can give a new dimension to the e-invoicing regime for new businesses and developed sectors which were till now outside the e-invoicing.
- Along with this, the process of e-invoicing can be improved by rationalizing the errors.
The system can be made more user friendly by bringing speed and reliability in challan processing. - Involvement of MSME sector will also help in limiting commercial disputes in the long run. This will also benefit the business ecosystem.
- Big businesses will be helped to track transactions properly.
(Disclaimer: The information provided here is based on isolated information. discountwalas does not confirm any kind of information.)
