Recent Changes in E-Invoicing : Effective from August 2023

In a move aimed at streamlining tax administration and expanding the tax base, the Central Board of Indirect Taxes and Customs (CBIC) has recently made significant changes to the e-invoicing system in India.

This blog post highlights the key updates and explores how Ortez Property Management System (PMS) can enhance the e-invoicing process specifically for hotels.

Lower Applicability Threshold

To include a larger number of businesses and promote tax compliance, the CBIC has reduced the turnover threshold for e-invoicing. Effective from August 1st, 2023, registered businesses with an aggregate turnover exceeding Rs. 5 Crores in any of the financial years starting from 2017-2018 are required to generate e-invoices. This limit was previously set at Rs. 10 Crores.

Wider Tax Base

By lowering the threshold, the CBIC aims to bring more businesses into the e-invoicing system. This expansion of the tax base helps in capturing a comprehensive picture of transactions, minimizing tax evasion, and ensuring better compliance with Goods and Services Tax (GST) regulations.

Benefits of e-invoicing

Reduction in data entry errors

Automated generation of invoices minimizes the risk of human errors, ensuring accurate and consistent invoicing information.

Real-time tracking of invoices

E-invoicing allows real-time tracking of invoices prepared by a supplier. This allows for faster availability of input tax credit

Ease of financial operation

E-invoices can be processed and shared electronically, leading to faster payment cycles and improved cash flow management.

Reduction in frauds

Real-time availability of data with tax authorities will lead to a reduction in frauds.

Tracking

All the details entered in the e-invoice are automatically saved and you get access to it all whenever the need arises.

The reduction in the e-invoicing threshold by the CBIC represents a significant step towards strengthening tax compliance and expanding the tax base in India. Embracing e-invoicing offers numerous benefits, including improved accuracy, faster processing, and enhanced compliance. Hotels can leverage the Ortez PMS e-invoicing feature to further streamline their invoicing processes, ensuring seamless integration, compliance monitoring, and customized reporting. By adopting these changes and utilizing technology-driven solutions, businesses can optimize their operations and stay ahead in an increasingly digital landscape.