Will it be tax(ing)

According to a circular from the Ministry of Finance about the Goods and Services Tax (GST) system, businesses having a turnover of more than Rs 5 crore will need to provide electronic invoices starting from 1 August. Companies must present an electronic or e-invoice as of August 1 if a B2B transaction costs more than Rs 5 crore. Companies must currently produce an electronic invoice for every B2B transaction if their yearly revenue is Rs. 10 crore or higher.For major businesses with a revenue of more than Rs 500 crore, e-invoicing was initially adopted in 2020. Within three years, however, the threshold was decreased to Rs 5 crore. Beginning on October 1, 2020, businesses with annual revenues over Rs 500 crore were required by legislation to use electronic invoicing for business-to-business (B2B) transactions. On January 1, 2021, businesses with annual revenues over Rs 100 crore were required to do the same. Beginning on April 1, 2021, businesses with annual sales of more exceeding Rs 50 crore began creating B2B e-invoices. The threshold was lowered to Rs 20 crore as of April 1, 2022. As of October 1, 2022, the threshold was further lowered to Rs 10 crore.For businesses, consequences of non-generation of e-invoice or non- compliance are that the business entity could face a penalty of 100% of the tax due, penalties of up to ₹10,000 per missing invoice & ₹25,000 per incorrect invoice, delayed payments and GST withholding. Therefore, it is important for businesses to understand the specific requirements, comply with the e-invoicing regulations, and ensure seamless integration of their invoicing systems with the designated ERP.