The Centre is reportedly considering making GST e-invoicing compulsory for entities with a turnover of Rs 5 crore from this financial year. The GST Network (GSTN) which facilitates e-invoicing, will be ready for the next phase in three-four months and adequate time will be given to the taxpayers to comply with the new norms.
The idea behind the move is to maintain digital records of many transactions, greater transparency in sales information, minimising mismatches and errors, automating data entry work, and improving compliance.
The e-invoicing system was introduced and was made mandatory for companies with an annual turnover of Rs 500 crore and above. Later, this limit was slashed to Rs 100 crore and then to Rs 50 crore for mutual business transactions in 2021. At present, e-invoicing is mandatory for companies with an annual turnover of Rs 20 crore or more.
The GSTN has reportedly initiated the process of empanelling at least six registration portals to provide e-invoicing facility to help higher volumes of transactions. Currently, there is only one challan registration portal for all businesses. The GSTN has tied up with four companies—Cygnet InfoPath, IRIS Business Services, Defmacro Software (Cleartax), and Ernst & Young LLP—for the invoice registration portal.
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