A government official in India has said that mandatory electronic invoicing of business-to-business (B2B) transactions, or any company with an annual turnover of more than Rs 20 crore, will boost the country's Goods and Services Tax (GST) registration.
As reported by Indian media outlet Mint on Sunday (February 27), this will lead to an increase in GST registration by about 75%. This system will be effective from April 1 and will add 180,000 GST Identification Numbers (GSTINs), which is an increase from the present 240,000.
The report said that under the GST law, e-invoicing was made mandatory for companies with a turnover of ₹500 crore or more by October 2020. This was later extended to entities with a turnover of more than ₹100 crore by January 2021, and finally in April 2021 for those with more than ₹50 crore.
The report said that there were 53,523 companies under registration in October 2020, and then 91,583 by January 2021 and 95,461 in April 2021.
As per the report, if a company carries on business in two or more states or union territories, or the registration process involves multiple business verticals, it can have multiple GSTINs.
Another official, who wished to remain anonymous, said that e-invoicing allows real-time tracking of challans and cuts down on the scope of fraud.
“Expanding the scope to cover small and medium entities will not only help in expanding the GST coverage, but will also prevent leakages. This will further increase the GST collection,” said an earlier anonymous official. “At present, there are around 240,000 eligible GSTINs for an annual revenue limit of more than ₹50 crore.
“We expect at least 75-80% more to be added by reducing the limit to ₹20 crore in April. E-invoicing has helped in improving compliance, which is reflected in the robust GST collection. It also helps prevent tax evasion."
TradeShift, a California-based company that provides automated accounts payable (AP) and invoicing systems, has launched an expanded cross-border e-invoicing platform that allows companies with a base in China to send and receive electronic purchase orders and invoices with business partners. will allow to do.
See also: China's first cross-border e-invoicing system integrates local trade into the global supply chain
The new capability comes from the Tradeshift Pay program.
Prior to the expansion of the platform, Chinese businesses required global partners to operate a separate China-only system or primarily use paper invoicing.