LI Network
Published on: November 09, 2023 at 11:19 IST
Sanjay Kumar Agarwal, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC), announced on Wednesday that the department will soon initiate the process of sending advisory notices to businesses that have failed to comply with the requirement of issuing e-invoices to their B2B (Business-to-Business) customers.
The CBIC made e-invoicing mandatory for businesses in a phased manner, commencing in 2020. Initially, this regulation applied to large companies with an annual turnover of over Rs 500 crore. However, over the course of three years, the threshold has been gradually reduced to Rs 5 crore.
Since August 1, 2023, businesses with an annual turnover exceeding Rs 5 crore are obliged to issue e-invoices. Chairman Agarwal noted that the compliance level among those required to file e-invoices by law is not very high.
To address this issue, the CBIC plans to take a gentle approach. As part of this strategy, advisory notices will be sent to taxpayers who have yet to adopt e-invoicing. Agarwal emphasized the desire to avoid an intimidating approach and instead intends to nudge non-compliant businesses toward issuing e-invoices.
It’s important to highlight that the details provided in e-invoices are automatically integrated into the monthly and quarterly GST (Goods and Services Tax) returns.
The CBIC’s move to send advisory notices demonstrates its commitment to encouraging compliance with e-invoicing regulations while ensuring a smooth transition for businesses. This approach seeks to enhance transparency and streamline tax reporting processes.
