New Delhi: The government is gearing up to mandate the issuance of electronic invoices (e-invoices for Business-to-Consumer (B2C) transactions within the next 2-3 years, a government official informed.
Presently, businesses with a turnover exceeding Rs 5 crore are obligated to generate e-invoices for their Business-to-Business (B2B) sales and purchases.
Shashank Priya, a member of the Central Board of Indirect Taxes & Customs (CBIC) specialising in GST, stressed the ongoing efforts to upscale GST systems to incorporate B2C transactions into e-invoicing.
Speaking at an Assocham event, Priya stated that the CBIC are looking at the requirement of e-invoice for B2C. GSTN capacities need to be upscaled. Systems will have to be put in place. They will examine which sectors to start with.
Addressing the current state of compliance, Priya mentioned that businesses with a turnover ranging from Rs 5-10 crore have been sluggish in adopting e-invoicing. CBIC officers have been actively encouraging non-compliant businesses to implement the system, emphasising the advantages, such as ease of doing business and streamlined processes for GSTR-1 and e-way bills, Priya said during the National Conference on GST.
The government has been gradually enforcing e-invoicing requirements for businesses under the Goods and Services Tax (GST) law. Initially mandated for companies with a turnover exceeding Rs 500 crore from October 1, 2020, the threshold has since been reduced, reaching businesses with a turnover of Rs 5 crore from August 1, 2023.
