Beware Taxpayers: E-invoicing Is Mandatory for Retailers, Shopkeepers, Companies or Service Providers

Beware Taxpayers: E-invoicing Is Mandatory for Retailers, Shopkeepers, Companies or Service Providers From April 1 there are many important Rules getting Changed. However, there is one very important Rule which has changed today and that rule is going to give sleepless nights to many small and medium-sized business owners in the country. E-invoicing under GST is now required for retailers, enterprises, and service providers with a turnover of more than Rs 20 crore in any Financial Year. The Central Board of Indirect Taxes (CBIC) has issued a circular requiring dealers selling an average of Rs 20 crore per year, i.e. Rs 1 crore 60 lakh per month, to issue electronic bills. E-Invoicing refers to a system in which billing is done online and in real-time, rather than just a computerized bill. In other words, billing will be handled directly through the GST E-Invoice portal. In other words, the government will watch every transaction. There will be fewer instances of false trade and billing. Overall, large-scale tax avoidance will be reduced. However, businessmen will get benefit from it as well. E-Invoices using the GST system will make matching buyer and seller data easier and will be Reflected in the Buyers GSTR2A immediately. Buyers need not to wait till the sellers file the GSTR-1 for their GST Input Credit. Credit will be reflected immediately. Billing mistakes can be prevented. Avoiding mismatching will also lower the likelihood of receiving tax notices or delaying refunds. It is worth noting that as of October 1, 2020, those with a turnover of more than Rs 500 crore were required to use e-invoicing. The scope was then expanded to include those with a revenue of more than Rs 100 crore on January 1, 2021. Those with a yearly turnover of more over Rs 50 crore were also subject to its JD as of April 1, 2021. It is now also applicable to companies with a turnover of more than Rs 20 crore. There are very high changes in coming times E-Invoicing will be Mandatory for Taxpayers having an Annual Turnover of Rs 5 crore or more.