A GST council meeting is scheduled on June 20, 2019. The Finance Ministry is likely to decide on e-invoice for B2B sales. The decision will be taken on the turnover threshold for entities which will generate an e-invoice on government portals for business-to-business (B2B) sales. The government may fix Rs. 50 crores as the turnover threshold for e-invoice under GST.
Notably, the GST officers were working on a system where businessmen with a turnover of the certain threshold will generate e-invoices on GST or government portal. This step was considered to reduce tax evasion. The process will start with the businesses getting a unique number to create an e-invoice or electronic invoice. This number will be matched with the invoices reported in the sales return and taxes paid.
The GST council meeting will be held on June 20 to take the final call on the turnover threshold. Analysis of the returns filled shows that 68,042 businesses reported having a turnover or more than Rs. 50 crores. It accounted for 66.6 percent of the total GST paid in 2017-18.
The businesses beyond the turnover threshold would be provided software which would also be linked with GST or other government portals for generating e-invoice. If the e-invoice system starts, the burden of the taxpayers will be eased significantly as the data will be auto-populated in the return forms. The Ministry is planning to commence the e-invoicing system by September.
