LI Network
Published on: December 09, 2023 at 12:18 IST
The government is contemplating the mandatory implementation of electronic or e-invoicing for Business to Consumer (B2C) transactions within the next 2-3 years, according to an official statement.
Presently, businesses with a turnover of Rs 5 crore and above are obligated to generate e-invoices for their Business to Business (B2B) sales and purchases.
Central Board of Indirect Taxes & Customs (CBIC) member-GST, Shashank Priya, revealed that the government aims to expand the e-invoice requirement to cover B2C transactions. Speaking at an Assocham event, Priya explained that the GST systems need to be upscaled, and efforts are underway to incorporate B2C transactions into e-invoicing.
“We are looking at the requirement of e-invoice for B2C. GSTN capacities need to be upscaled. Systems will have to be put in place. We have to see which are the sectors we can start first. It is work in progress, but we hope in the years to come we will be able to take this forward,” Priya stated.
Priya further noted that businesses with turnovers between Rs 5-10 crore are not fully adopting e-invoicing, and CBIC officers have been encouraging non-compliant businesses. He emphasized that implementation is progressing slowly, and the government is nudging taxpayers to adopt e-invoicing, highlighting its advantages, such as ease of doing business and streamlined processes like GSTR-1 and e-way bills.
The government has been progressively mandating e-invoicing for businesses under the Goods and Services Tax (GST) law. Initially, it was made mandatory for companies with turnovers exceeding Rs 500 crore from October 1, 2020. Subsequently, the threshold was reduced to Rs 100 crore from January 1, 2021, and further lowered to Rs 50 crore from April 1, 2021.
The threshold adjustments continued, reaching Rs 5 crore from August 1, 2023. The government’s phased approach aims to ensure widespread compliance and a smooth transition to e-invoicing practices across various business segments.
