The Union Finance Minister Nirmala Sitharaman chaired the 54th meeting of the GST Council today (9th September 2024) at Sushma Swaraj Bhawan in New Delhi. The Union Minister of State for Finance M.P.P. Chaudhary, along with the Chief Ministers of Goa and Meghalaya, and the Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana also participated in the meeting.
The GST council approved the introduction of a system of invoicing directly from business to consumers, and aims at introducing B2C e-invoicing in the near future.
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The supplies made to unregistered consumers are termed as B2C that is business to consumers. In B2C the end users won’t claim ITC ( Input Tax Credit). Before the council’s decision B2C invoices were exempted from e-invoicing.
But after the notification by Central Tax in the 2020 taxpayers with annual turnover over Rs.200 crore was compulsorily required to generate QR code on B2C invoices, non compliance of which shall attract a penalty of Rs. 25,000.
Earlier the e-Invoicing System was utilized for B2B invoices, for registered businesses by generating e-bills. In electronic invoicing previously generated standard invoices are submitted in a common e-invoice portal. After which an identification number will be issued for every invoice by the Invoice Registration Portal ( IRP ).
Introduction B2C e-invoicing shall reduce the burden of manual entry of data while filing Goods and Services Tax Return as the data is directly passed to the GST portal.
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This introduction shall bring forth a major shift for business across India, this modification is presumed to promote transparency and simplify complexities of taxing, moreover limiting tax avoidance.
The council has decided to initiate B2C e-invoicing by way of voluntary acceptance of e-invoicing through various participating states. The new policy is expected to reduce paperwork and decrease transaction costs while promoting tax compliance.
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