In a significant move, the government is gearing up for substantial alterations in the Goods and Services Tax (GST) system.
Within the next two to three years, a proposal is underway to make it compulsory for all businesses to issue electronic or e-bills for ‘Business to Customer’ (B2C) transactions.
Advancing GST System Capabilities
Shashank Priya, Member-GST at the Central Board of Indirect Taxes and Customs (CBIC), revealed that efforts are in progress to advance the GST system by making e-bills mandatory for B2C transactions.
Speaking at an event organized by ASSOCHAM, Priya emphasized the need to enhance the capabilities of the Goods and Services Tax Network (GSTN) to accommodate these changes.
Mandatory E-Bills on the Horizon for B2C Transactions
Priya stated, “We are looking at the need for e-bills for B2C. There is a need to enhance GSTN capabilities.
The system has to be ready. We have to see what are the areas from where it can be implemented.”
He added, “A start can be made. It is a work in progress. We hope that we will be able to take it forward in the coming years.”
Crackdown on Non-Compliance
Despite the existing mandate for companies with a turnover of Rs 5 crore and above to issue e-bills for ‘Business to Business’ (B2B) transactions, businesses with a turnover of Rs 5 to 10 crore are reportedly not fully complying.
CBIC officials are actively pursuing non-compliant businesses, aiming to ensure widespread adherence to the e-bill issuance requirements.
Evolution of E-Bill Mandates
The current e-bill issuance mandates were initially applicable to companies with a turnover exceeding Rs 50 crore, starting from April 1, 2021.
Over subsequent years, these limits have progressively reduced, with the latest adjustment setting the threshold at Rs 5 crore from August 1, 2023.
Stay tuned for further updates as the government continues to steer the GST system towards a more streamlined and technologically advanced future.
