Ahead of the first wave of businesses being mandated for e-invoicing on B2B GST invoices from 1 October 2020, India has increased the registration threshold to reduce the numbers of businesses having to comply. Indian GST was introduced in 2017.
The new electronic invoicing regime will be introduced on 1 October 2020. The annual sales registration threshold has now been raised from INR 1billion to INR 5billion (Rs 500 crore). 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.
You can check the right Goods and Services calculations on individual or batch transactions with our Advisor and Auditor services.
