In a bid to tackle revenue leakage and to ensure better tax compliance from businesses, e-invoice for businesses with an aggregate turnover of Rs 10 crore and above will become mandatory from October 1.
For this the government has lowered the limit from Rs 20 crore to Rs 10 crore in order to combat revenue leakage and ensure better tax compliance by businesses.
“In the said notification, in the first paragraph, with effect from the 1stday of October, 2022, for the words “twenty crore rupees”, the words “ten crore rupees” shall be substituted,” Central Board of Indirect Taxes and Customs (CBIC) said in its notification.
The rules have been notified on the basis of the recommendations made by the GST Council.
Experts claim that the CBIC’s announcement regarding the requirement for businesses to use digital invoices will enhance tax compliance and pave the way for the requirement to apply to all GST taxpayers.
The move will also ensure that smaller vendors who have to adhere to this mandate do not lose out on input tax credit.