New rule of GST from April 1: Businesses with a turnover of more than Rs 20 crore

New rule of GST from April 1: Businesses with a turnover of more than Rs 20 crore will also have to do this work

Businesses with a turnover of more than Rs 20 crore will have to deduct electronic challan for B2B (business to business) transactions from April 1. This was stated by the Central Board of Indirect Taxes and Customs (CBIC). Under the Goods and Services Tax (GST) Act, e-invoicing was made mandatory from October 1, 2020, for companies with a turnover of more than Rs 500 crore on B2B transactions. Later it was made mandatory for companies with a turnover of more than Rs 100 crore from January 1, 2021.

From April 1 last year, companies with a turnover of more than Rs 50 crore were generating e-invoicing for B2B transactions. Now companies with a turnover of more than Rs 20 crore are being brought under its ambit. Bipin Sapra, tax partner, EY India, said the move would ease tax compliance and reduce input tax credit fraud.

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