From April 1, there are going to be changes in many types of financial rules. But one rule has given sleep to lakhs of small and medium businessmen of the country. From this day, e-invoicing is becoming mandatory for shopkeepers, companies or service providers with a turnover of more than Rs 20 crore. According to the circular issued by the Central Board of Indirect Taxes (CBIC), traders selling an average of Rs 20 crore annually i.e. Rs 1 crore 60 lakh per month will have to issue electronic bills.
Here electronic bill means not just computerized bill, but a system in which billing is done online and in real time. That is, the billing will be done directly through the GST portal. In other words, every transaction will be monitored by the government. There will be less chances of bogus trading and fake billing. Overall, tax evasion on a large scale will be curbed.
But on the other hand, businessmen will also get its benefits. Billing through the GST portal will make it easier to match the data of buyers and sellers. Billing errors can be avoided. Avoiding the problem of mismatching will also reduce the chances of getting tax notices or delaying refunds.
It is worth noting that from October 1, 2020, the requirement of e-invoicing was applicable for those with a turnover of more than Rs 500 crore. Then from January 1, 2021, its scope was extended to those with a turnover of more than Rs 100 crore. From April 1, 2021, those with a turnover of more than Rs 50 crore annually also came under its JD. And now it is also applicable to those with a turnover of more than Rs 20 crore.
It is possible that soon it will become mandatory even for those with annual turnover of Rs 5 crore or less, as the GST structure itself is based on online tax compliance. We talked to experts on the entire campaign of e-invoicing and the rules that will be applicable from April 1. (Watch the full interview below and in the embedded video.)
Taxpayers be alert!
From April 1, many more changes or important works related to GST will be introduced, for which taxpayers will have to be alert. For businessmen who are engaged in export or supply to a Special Economic Zone (SEZ), the letter of undertaking will have to be issued or renewed in the new financial year. Small businessmen who fall under the Quarterly Return and Monthly Payment (QRMP) category will have to go to the common portal of GST and opt for QRMP.
Similarly, composition dealers, whose annual income is up to Rs 1 crore, will also have to update the status on the portal to opt or renew it in the new financial year. Any kind of mismatch in the buying and selling figures can put the businessmen in trouble in the new financial year. So they should be checked now. If such recipient i.e. supply taker has not been able to make payment to his supplier within 180 days, he will have to reverse the credit.
Similarly, before the arrival of 1st April, check whether you do not have any tax liability in the financial year 2021-22. If it is made, then pay it immediately, otherwise interest at the rate of 18% will also have to be paid on the delay.