GST-registered companies with annual turnover of more than Rs 5 crore will soon have to generate electronic invoices for B2B transactions, a top official said on Thursday.
The CBIC Chairman Vivek Johri said the GST Council, comprising finance ministers of the Centre and states, had decided to implement it in a phased manner and with e-invoices being generated, for every Business-to-Business (B2B) transaction, invoice matching by tax authorities would not be required under Goods and Services Tax (GST).
"We started with a very high threshold and soon we are going to have all taxpayers with an annual turnover of more than Rs 5 crore having to generate einvoices for their B2B part of business. With the launch of e-invoice, we don't need invoice matching," Johri said at a event organised by industry body PHDCCI in New Delhi.
Currently, businesses with turnover of over Rs 20 cr will have to generate e-invoices for B2B transactions. "E-invoicing is revolution and there is no other country that has adopted this. The phasing has been very gradual. We didn't want to burden the taxpayer community with e-invoices. The Council knew it cannot be done in one stroke, and it started in a phased manner and gradually brought it down," Johri said.
GST Rules: Govt notifies procedural changes
CRISIL lowers India's FY23 GDP growth forecast to 7.3-pc
GST collection in June scales up at Rs 1.44 lakh cr: Sitharaman