GST Rules Changing From Tomorrow, Lakhs Of Companies In India To Be Impacted

New Delhi, July 31, 2023

New GST threshold for businesses turnover of over 5 crore will kick in from tomorrow. As per a Ministry of Finance has a circular with regard to the Goods and Services Tax (GST) system, Businesses with turnover of over 5 crore will be required to generate e-invoice from August 1.

Starting on August 1, companies with a B2B transactional value of over Rs 5 crore will be required to produce an electronic or e-invoice. For all B2B transactions, companies must currently generate an electronic invoice if their annual revenue is Rs. 10 crore or more.

E-invoicing was initially (2020) implemented for large companies with turnover of more than Rs 500 crore, and within 3 years the threshold has now been lowered to Rs 5 crore. E-invoicing for business-to-business (B2B) transactions was made mandatory under GST law for companies with annual revenues over Rs 500 crore starting on October 1, 2020, and then for those with annual revenues over Rs 100 crore starting on January 1, 2021.

Companies that had a turnover of more than Rs 50 crore started producing B2B e-invoices from April 1, 2021. from April 1, 2022, the barrier was reduced to Rs 20 crore. The threshold was further reduced to Rs 10 crore as of October 1, 2022.

Meanwhile, the GST council is likely to meet on August 02, to finally decide the implementation of GST on online gaming. The council will also decide whether the 28% GST will be levied on the deposits or on every game. The revenue secretary yesterday had acknowledged that levying 28% tax on every game will lead to repeated taxation of the same rupee resulting in the effective tax rate going as high as 50%-70%.

[Zee News]