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Government Plans to Expand E-Invoice Mandate to B2C GST Transactions

The government is considering the enforcement of e-invoicing for Business-to-Consumer (B2C) transactions within the next 2-3 years, according to an official announcement on Wednesday. Currently applicable to businesses with a turnover exceeding Rs 5 crore, e-invoicing is mandatory for Business-to-Business (B2B) sales and purchases.

Upgradation of GST Systems for B2C Integration

Shashank Priya, a member of the Central Board of Indirect Taxes & Customs (CBIC) focused on GST, highlighted the ongoing efforts to upscale GST systems for the inclusion of B2C transactions under e-invoicing. Priya emphasized the need for system implementation and sector-wise prioritization, acknowledging that the process is a work in progress.

Challenges and Encouragement for Compliance

Priya noted that businesses with turnovers between Rs 5-10 crore have been slow to adopt e-invoicing, despite CBIC officers actively encouraging compliance. He highlighted the benefits, such as ease of doing business and automated processes like populated GSTR-1 and e-way bills, associated with the implementation of e-invoicing.

Staggered Implementation and Threshold Adjustments

The government has systematically enforced e-invoicing, starting with mandatory compliance for companies with turnovers exceeding Rs 500 crore from October 1, 2020. Subsequently, the threshold was reduced to Rs 100 crore from January 1, 2021, and further lowered to Rs 50 crore from April 1, 2021. The most recent adjustment brought the threshold down to Rs 20 crore from April 1, 2022, for B2B transactions.


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