BENGALURU: A businessman with an aggregate turnover of Rs 10 crore can now benefit from electronic billing, or what is called e-invoicing, when the new system kicks in from October 1. Earlier, the aggregate turnover had to be a minimum of Rs 20 crore, but now businesses with smaller volumes can also benefit.
The move will help in greater transparency, and is expected to ensure better compliance, Commercial Tax Commissioner C Shikha said. Asked if it would cause any slackening in collection, she said, “On the contrary, it will help in the better collection since the process is more transparent.”
Federation of Karnataka Chamber of Commerce and Industry’s GST Committee chairman B T Manohar told TNIE, “E-invoicing is a step in the right direction. It will help curtail fake invoicing and evasion of taxes, and support the seamless flow of input tax credit. We have conducted several rounds of workshops with the help of CGST and SGST departments, which are supported through webinars conducted by NIC Karnataka.’’
The turnover qualification of Rs 10 crore used to be Rs 500 crore two years ago, and was brought down to Rs 100 crore, then to Rs 50 crore and thereafter to Rs 20 crore, in stages, Manohar said.
“This e-invoicing is for B2B transactions and is expected to make evasion that much more difficult. The sum total of GST collected for the month of September will not help, but will ensure higher compliance and collection in the month of October,” sources explained.