Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

GST: E-Invoices mandatory for B2B Transactions from September

As part of taking stringent measures to crackdown tax evasion under the GST regime, the Government is likely to implement e-invoices mandatory for B2B transactions. Consequently, all invoices for business-to-business sales by entities beyond a specified turnover threshold will be generated on a centralised government portal.

Reportedly, the revenue secretary is monitoring the progress of implementation of electronic or e-invoice project for which an officers’ committee has already been set up, they added.

“E-invoice for B2B transactions will be rolled out in next three-four months in a phased manner. The entire invoice would have to be generated on a government portal,” an official told PTI.

The move aims at curbing tax evasion through fake invoices. Recently, a large number of GST evasion cases were reported where the evaders used fake invoices.

Besides, it would make the returns filing process simpler for businesses as invoice data would already be captured by a centralised portal. “Once rolled out, the e-invoice project will allow businesses to simultaneously generate e-way bill if needed,” the official added. E-way bill is required for moving goods exceeding Rs 50,000.

Depending on the success of the project in the B2B segment, the revenue department would be looking at extending it to business-to-consumer (B2C) sales, especially in sectors where the probability of tax evasion is high. Businesses beyond the specified turnover threshold, to be decided later, would be provided software which will be linked to the GST Network (GSTN) or a government portal for generating e-invoice.

The threshold can also be fixed on the basis of the value of the invoice. The proposed ‘e-invoice’ is part of the exercise to check GST evasion. With almost two years into GST implementation, the government is now focussing on anti-evasion measures to shore up revenue and increase compliance.

There are over 1.21 crore registered businesses under the GST, of which 20 lakh are under the composition scheme.

Read more at: https://www.taxscan.in/gst-e-invoices-b2b-transactions/35441/

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