New GST Rule To Come Into Effect From October 1; Read Here How It Will Impact You

The Central Board of Indirect Taxes (CBDT) and Customs have given this information by issuing a circular. E-Invoice has been made mandatory from 1 October 2022 for companies with a turnover of more than Rs 10 crore under the Goods and Services Tax (GST).I

New GST Rule: From October, there is going to be a big change in the rules of GST. Under this, businesses with a turnover of more than Rs 10 crore will have to generate an electronic invoice (E-Invoice) for B2B transactions from October 1. The Central Board of Indirect Taxes (CBDT) and Customs have given this information by issuing a circular. E-Invoice has been made mandatory from 1 October 2022 for companies with a turnover of more than Rs 10 crore under the Goods and Services Tax (GST).

Information provided by the department

Let us inform you that earlier in March, the facility of registration and login was enabled for taxpayers with a turnover of Rs 20 to 50 crores. At the same time, with effect from April 1, 2022, the board had reduced the limit of GST e-invoicing from Rs 50 crores to 20 crores. Notably, since April 1 last year, companies with a turnover of more than Rs 50 crore were generating B to B invoices which is now being extended to companies with a turnover of more than Rs 10 crore.

Why was this decision taken?

The Government of India is constantly making changes in the rules of Goods and Service Tax as the government wants to reduce instances of tax evasion. Regarding this, in October 2020, the government decided that such companies whose turnover is more than Rs 500 crores will be required to generate e-invoices on their B2B transactions.

Information has to be given on the portal

Let us tell you that at present this limit is Rs 20 crores which CBDT has decided to reduce again to Rs 10 crores. Let us tell you that Goods and Service Tax (GST) payers will be able to send online through the E-Invoice registration portal. Keep in mind that under e-invoicing, the taxpayers have to generate the bill through their internal system and have to report it to the online Invoice Registration Portal (IRP).