The Indian Central Board of Indirect Taxes and Customs has lowered the annual sales threshold for mandatory GST e-invoices. Check VAT Calc’s global live VAT invoice transaction and e-invoice reporting tracker to see where else real-time submissions of invoices is being implemented. With effect from 1 April 2021, e-invoicing will be mandatory for all taxpayers that have aggregate turnover exceeding INR500 million (50 Crores).
India B2B e-invoice rollout Oct 2020 to Apr 2021
The new electronic invoicing regime was introduced on 1 October 2021. The annual sales registration threshold has now been lowered from Rs 500 crore from 1 April 2021. This will affect over 48,000 Goods and Services Tax registered enterprises. These taxpayers account for almost 50% of all GST collections. Testing and registrations for the system began in February 2020.
The following businesses are exempt from the requirement: financial services; located special economic zone; passenger transport services and goods transport brokers.
Under the REAP program, enhancement of GSTR 2A – purchase related tax return usually auto populated when taxpayer files GSTR 1 for outward supplies – and linking of GSTR 1 to GSTR 3B, which is summary return for sales and input tax credit, to create a new form GSTR 2B has been envisaged.
Indian GST was introduced in 2017.
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