GST: The Central Board of Indirect Taxes and Customs (CBIC) said that businesses with more than 20 crore turnover will have to deduct electronic invoices for B2B (business-to-business) transactions from April 1. After this step, there will be more transparency in the implementation of tax related rules than before.Â
The month of March is about to end. The new financial year will start from 1st April and with this there are many such big rules in which changes are taking place. The changes in the rules from April 1 will directly affect your pocket. From this day the rules of GST are also changing.
In fact, the Central Board of Indirect Taxes and Customs (CBIC) said that businesses with a turnover of more than 20 crores will have to deduct electronic invoices for B2B (business to business) transactions from April 1. Earlier, e-invoicing was made mandatory from October 1, 2020, for companies with a turnover of more than Rs 500 crore on B2B transactions under the Goods and Services Tax (GST).
Companies with turnover of 50 crores were in the range
It is worth noting that earlier from January 1, 2021, it was made mandatory 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 e-invoicing for B2B transactions. But from this financial year, businesses with more than 20 crore turnover will have to deduct electronic invoices for B2B (business to business) transactions.
There will be transparency in tax rules
After this change in the GST rules, companies with a turnover of more than Rs 20 crore are being included in its purview. Bipin Sapra, Tax Partner, EY India, said that after this step, there will be more transparency in the implementation of tax related rules than before. Along with this, fraud related to input tax credit will also be reduced. That is, after the implementation of this rule, tax related problems will also come down.
