Govt to mandate E-Invoice for B2C Transaction in coming 2-3 years:

Govt to mandate E-Invoice for B2C Transaction in coming 2-3 years According to a government official on Wednesday, in the next two to three years, firms will probably be required to submit electronic invoices for business-to-consumer transactions. Business-to-business (B2B) sales and purchases must currently be documented using electronic invoicing for companies with a turnover of at least Rs 5 crore. The e-invoice mandate will soon also apply to business-to-consumer transactions, according to government plans. "We are looking at the requirement of e-invoice for B2C. GSTN capacities need to be upscaled. Systems will have to be put in place. We have to see which are the sectors we can start first. It is a work in progress but we hope in years to come we will be able to take this forward," Government Official said at an Assocham event. Priya further said businesses with turnover between Rs 5-10 crore are not fully issuing e-invoices and CBIC officers have been nudging non-compliant businesses. "Its (business with Rs 5 crore turnover issuing e-invoice) implementation is still quite tardy. We have issued instructions. We are trying to nudge taxpayers that it has certain advantages like ease of doing business. GSTR -1, e-way bills will get populated," Priya said at the National Conference on GST. Businesses have been required by law to use electronic invoices in a phased manner. E-invoicing for business-to-business (B2B) transactions was made required by the Goods and Services Tax (GST) law for enterprises with a turnover of above Rs 500 crore as of October 1, 2020. This need was further extended to those with a turnover of over Rs 100 crore as of January 1, 2021. Companies with a revenue of more than Rs 50 crore were required to generate B2B e-invoices as of April 1, 2021; starting April 1, 2022, this threshold was reduced to Rs 20 crore. The threshold was lowered to Rs 10 crore beginning of October 1, 2022. The requirement was expanded to include enterprises with a revenue of Rs 5 crore as of August 1, 2023.