BEGINNING 1 AUGUST even micro, small and medium enterprises (MSMEs) need to begin the process of e-invoicing for paying Goods and Services Tax (GST). The lowering of the compliance threshold will bring many more firms within the e-invoicing regime for the first time. It is estimated that almost 30 per cent of MSMEs fall within the Rs 5 - Rs 10 crore annual turnover bracket.
For these companies, details of every invoice must be submitted to the GST portal so that information may be shared in real time with the GST system. “Larger SMEs with established technological capabilities might adapt more smoothly, whereas smaller ones could face initial challenges in adopting the necessary e-invoicing systems. The degree of impact will depend on how prepared SMEs are for this transition,” points out Sanjay Kaushik, Managing Director (MD), Netrika Consulting.
The turnover threshold for mandatory e-invoicing has been progressively brought down from an annual turnover of above Rs 500 crore to Rs 10 crore and effective 1 August this year, Rs 5 crore, thus bringing MSMEs within its ambit. The measure aims to simultaneously boost GST collections and improve tax compliance. The phased implementation of the process was intended to allow industry and businesses and particularly SMEs (small and medium enterprises), time to prepare for the process.
A report by Global Alliance for Mass Entrepreneurship (GAME) with Dun & Bradstreet and Omidyar Network India revealed that an estimated 5.9 per cent of the gross value added (GVA) in the Indian economy i.e. Rs 10.7 lakh crore is locked up in delayed payments from buyers to MSME suppliers. So, the mandatory e-invoicing may solve the perennial problem of funds stuck in the pipeline for small and medium businesses.
This story is from the August 26, 2023 edition of BW Businessworld.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 26, 2023 edition of BW Businessworld.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
The Astrology Cryptocurrency Of In New Financial Year
Whether you're a seasoned investment enthusiast or just starting out on your financial journey, Vedic astrology can be beneficial, especially in markets as volatile as the crypto sphere
KRISHNA CONSCIOUSNESS
The reader can almost feel that the mortal journey of Krishna has ended, yet Krishna Consciousness has manifested again as Keshav. Krishna-the Seventh Sense reveals the continuity of existence, notwithstanding the limitation of the one who exists. This book is a treasure
Recreating The Maruti Moment In EVs
SAJJAN JINDAL on the joint venture with MG Motor, electric mobility, charging infrastructure and more
Sustainable Models of Support for Women Entrepreneurs in India
Personal one-on-one mentorship is a key intervention that is most required amongst MSMEs and young startup founders today
ELEVATED ROAD TO SUCCESS
Honda Cars India is exporting 'Made in India' cars back to Japan showcasing India as a strong manufacturing hub for Honda sedans and SUVs. What is its game plan?
HOW HINDUJA GROUP'S BID TO ACQUIRE RELIANCE CAPITAL VIOLATES INDIA'S FDI, INSURANCE NORMS
The bid structure has come into question with the insurance regulator pointing out that it not just allows Hinduja Group-backed foreign entities to own 100 per cent in Reliance Capital’s insurance business but also lets them bid on borrowed money in total disregard of Indian laws and norms
Taking Astrology To The Masses
Driven by profound fascination and belief in the cosmic intricacies, Rajeev Bhandari, Founder, AstroSagga is on a mission to offer affordable courses to fuel employment in astrology sector
"My Mission Is To Make Temples Across India Better"
Sharad Kamath, Founder and CEO, 3ioNetra identified the need fora comprehensive software solution to address the complex billing and accounting needs of temples based on his experiences as avolunteer and organiser at religious functions
A Conduit Between Spiritual and Tech Realms
In November 2023, Vama secured a Seed Plus round led by Wavemaker Partners, bringing its total funding to USS 2.8 million
"AI Will Catalyse Hockey Stick Growth Of Astro Sector In India"
The current faithtech landscape in India leans heavily towards entertainment, says Punit Pandey, Founder, AstroSage and believes the key lies in shifting the revenue model from entertainment to trust