GST: Know about New System to be Implemented From 1st April

The month of March is coming to an end. The new Financial year will begin on April 1st, and many major rules will change as a result. The new rules that go into effect on April 1 will have a direct impact on your wallet. GST rules are also changing as of today.

In fact, the Central Board of Indirect Taxes and Customs (CBIC) announced that beginning April 1, businesses with a turnover of more than 20 crores will be required to issue Electronic invoices (E-Invoice) for B2B (business to business) transactions. Previously, under the Goods and Services Tax, e-invoicing was made mandatory for companies with a turnover of more than Rs 500 crore on B2B transactions beginning October 1, 2020. (GST).

[Refer notification Notification Number 01/2022 dated 24th Feb 2022 issued by Central Board of Indirect Taxes & Customs (CBIC)]

Companies with a turnover of 50 crores were included

It is worth noting that it was previously made mandatory for companies with a turnover of more than Rs 100 crore beginning January 1, 2021. Companies with a turnover of more than Rs 50 crore began generating e-invoicing for B2B transactions on April 1, last year. However, beginning this fiscal year, businesses with a turnover of more than 20 crore will be required to deduct electronic invoices for B2B (business to business) transactions.

How to Generate E-Invoice on Tally Prime: E-Invoice on Tally Prime

The tax rules will be transparent

Companies with a turnover of more than Rs 20 crore are now subject to the GST regime, thanks to a change in the rules. According to Bipin Sapra, Tax Partner at EY India, after this step, there will be more transparency in the implementation of tax-related rules than previously. In addition, fraud related to input tax credit will be reduced. That is, after the implementation of this rule, tax-related issues will be alleviated.