new Delhi. The government can soon give big relief to crores of small and retail shopkeepers-businessmen across the country. Sources related to the matter say that the government can exempt everyone from making GST e-invoice mandatory.
An official related to the matter says that the intention of the government was to implement e-invoicing for all business-to-business (B2B) transactions. For the time being, it is being considered to leave it. It has been suggested to the government that before implementing e-invoicing for all, the profit and loss due to it should be assessed.
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Right to be implemented up to 20 crores
At present, it is necessary to generate e-invoice for businesses with annual turnover up to 50 crores registered on the GST portal. From April 1, this limit will be increased to 20 crores. That is, now businessmen with annual turnover up to 20 crores will be required to generate e-invoice for B2B transactions.
Question asked to Finance Ministry
Experts have asked the Finance Ministry to reduce the minimum limit of e-invoice from 20 crores to implement it on all small businessmen. He says that the number of small businessmen is high, but it is very less in terms of tax liability. If the government imposes unnecessary compliance burden on the shopkeepers, then it can create a hindrance in the economy and business.
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End consumer cannot claim ITC
Tax experts say that it is perfectly reasonable to fix the minimum limit of 20 crores for e-invoice by the government, but it is not right to bring all the small transactions below this. The end retail consumer cannot claim input tax credit on any of his purchases or sales. Therefore, it should not even be necessary for him to follow the e-invoice rule.
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