Govt. bringing small businesses under the chain of Goods and Services Tax is a boon for service providers: GST DOST

With the government bringing small businesses under the chain of Goods and Services Tax, it has become a boon for service providers, a tax startup has claimed.

The startup named GST Dost estimates the total value of GST and related services to be over Rs 12,000 crore. 'The introduction of e-invoicing for companies of Rs 100 crore and above will open new business opportunity for us.There are approximately 13,500 businesses having turnover of over Rs 100 crore in India,' GST DOST president Vikas Dhanania has claimed.

The government has notified the mandatory requirement of e-invoicing for B2B transactions for businesses with a turnover of over Rs 100 crore with effect from January 1, 2021. E-invoicing is currently mandated for businesses with an annual turnover over Rs 500 crore.

For the government, it will lead to reduction in fraud cases in tax evasion, it is presumed.