Ease of Doing Business for MSMEs: Earlier this month, the Central Board of Indirect Taxes and Customs (CBIC) had notified that e-invoicing will be mandatory for B2B transactions for businesses with a turnover of more than Rs 50 crore from April 1, 2021.
Ease of Doing Business for MSMEs: Mandating businesses with over Rs 50 crore turnover (midsize firms) to generate e-invoices is a welcome move but it might be a problem for micro, and small businesses who don’t invest much in technology and lack digital literacy, according to Animesh Saxena, President, Federation of Indian Micro and Small & Medium Enterprises (FISME). E-invoicing was earlier made mandatory under Goods and Services Tax (GST) law for business-to-business (B2B) transactions by businesses with a turnover of more than Rs 500 crore from October 1, 2020, and over Rs 100 crore from January 1, 2021. Earlier this month, the Central Board of Indirect Taxes and Customs (CBIC) had notified the same for businesses with more than Rs 50 crore turnover. As per the MSME definition revised last year, enterprises with turnover ranging from Rs 51 crore to Rs 250 crore are classified as medium units.
Source: Financial Express
