The Central Board of Indirect Taxes and Customs has said to bring a new rule for big businessmen across the country from April 1. After the implementation of this rule, there will be more transparency in the business than before.
The Central Board of Indirect Taxes and Customs (CBIC) said that businesses with a turnover of more than 20 crores will have to generate electronic invoices for B2B (business to business) transactions from April 1. Under the Goods and Services Tax (GST), e-invoicing was made mandatory from October 1, 2020, for companies with a turnover of more than Rs 500 crore on B2B transactions.
Companies with turnover of 50 crores were in the range
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.
There will be transparency in tax rules
After the new change, now companies with a turnover of more than Rs 20 crore are being brought under 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.
