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What is the new e invoice rule? What is the turnover limit for e invoice in 2023? Posted: May 26, 2023 @ 3:59 am |
GST system was introduced for revolutionary tax reform in the country. The GST system has achieved a lot of success in establishing the system of one country one tax. Various modifications have been made to this system since its existence. One of these amendments pertains to changes in the turnover limit for e-invoices. From August 01, 2023, companies with a turnover of more than five crore rupees will have to issue e-invoice. So far, only companies with a turnover of Rs 10 crore or more were required to generate e-invoices for B2B transactions. What is E Invoice? In general, an invoice is a document that contains the complete details of the buyer and the price of the goods and services. Whereas E-invoice in the GST system is a process in which a normal business receipt is electronically validated by the GSTN network. A unique identification number is issued to each such receipt by the e-invoice registration portal of the GST network. If a company or business with a turnover limit set by the government does not implement the e-invoice system, then a fine is imposed on it. Also, read: What is Tax Invoice under GST? What is the new rule of e-invoice? According to the notification issued by the Ministry of Finance, Government of India on May 10, 2023, the turnover for generation of e-invoice for B2B transactions has been reduced to Rs.5 crores, which used to be Rs.10 crores earlier. This new rule will be applicable from August 01, 2023. What is the meaning of reducing the turnover limit of e-invoice? Economic experts tell that by reducing the turnover limit of e-invoice under GST of the government, micro, small and medium scale industries will also come under e-invoice. Experts also point out that reducing the turnover limit under e-invoicing on a phased basis has made the system very easy to implement. While procedural bottlenecks have reduced on the one hand, compliance has improved on the other and revenue has also increased. In the initial phase of implementation of GST system, where e-invoicing was made mandatory for companies with turnover of more than Rs 500 crores, within three years it has been made mandatory for companies with turnover of Rs 5 crores. For more information, Visit us at: https://academy.tax4wealth.com/blog
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