Indian government could make compulsory for businesses to provide electronic or e-invoices for Business-to-Consumer (B2C) transactions in coming two to three years, as per official said.
Businesses with a turnover of Rs 5 crore and above need to give e-invoices for their Business-to-Business (B2B) sales and purchases.
Central Board of Indirect Taxes and Customs (CBIC) member-GST Shashank Priya said that now the government intends to make the e-invoice mandatory for Business-to-Consumer (B2C) transactions as well.
He said that the GST systems need to be improve and efforts are being made to include Business-to-Consumer (B2C) transactions under e-invoicing, as per PTI.
Shashank Priya speaking at the Associated Chambers of Commerce and Industry of India (ASSOCHAM) event.
Shashank Priya said :
The official said that businesses with turnover between Rs 5-10 crore are not completely issuing e-invoices and CBIC officers have prompting businesses who have non-compliant.
Shashank Priya said :
Central government has gradually making e-invoices compulsory for businesses.
As per the Goods and Services Tax (GST) law, e-invoicing for B2B transactions was made compulsory for firms with a turnover of more than Rs 500 crore from 1st October, 2020.
This was later extend to those with a turnover of more than Rs 100 crore and implement from 1st January, 2021.
From 1st April, 2021, entities with turnover of more than Rs 50 crore have generating B2B e-invoices, and the limit was reduce to Rs 20 crore starting from April 2022.
From October 2022, the threshold was further lower to Rs 10 crore, and then from August 2023, the requirement was extend to businesses with a turnover of Rs 5 crore.