If you do business or you are associated with business on any side, this news can prove to be important for you. According to the new notification issued by the government, an important rule will be applicable from April 1, 2022, for businessmen with a turnover of more than Rs 20 crore. As per this new rule, businesses with a turnover of more than Rs 20 crore will have to generate an electronic invoice for B2B transactions with effect from April 1, 2022.
According to the Central Board of Indirect Taxes and Customs, under the Goods and Services Tax (GST) Act, business-to-business (B2B) transactions are allowed for companies with a turnover of more than Rs 500 crore. Invoicing was made mandatory from 1 October. Which was extended from January 1, 2021 for people with a turnover of more than Rs 100 crore. From April 1 last year, companies with a turnover of more than Rs 50 crore were generating B2B e-invoices. Now it is being extended to companies with a turnover of more than Rs 20 crore.
With this, suppliers will be required to raise e-invoices from April 1, 2022 onwards. In case the invoice is not valid, the Input Tax Credit cannot be availed by the recipient other than the penalty applicable thereon.