Kathmandu. Now, businesses with annual turnover of more than Rs 20 crore will have to compulsorily issue invoices through electronic means.

Earlier, this provision was applicable only to businessmen with a turnover of more than Rs 25 crore, but the Inland Revenue Department has implemented a new decision by reducing the limit at the end of March. According to the department, companies carrying out transactions exceeding the prescribed threshold are mandatorily required to join the Central Invoice Monitoring System (CBMS). Every bill issued through this system will be automatically recorded on the government’s central server.

According to the department, the goal is to reduce this limit further in the coming years and bring all businesses into the system. The department hopes that this will increase transparency and help control irregularities.

The implementation of the electronic billing system is expected to help reduce tax evasion, increase revenue collection and enhance trust between taxpayers and the government.

The department said it was also preparing to encourage small entrepreneurs to voluntarily join the system. However, banks and financial institutions are not compelled to join the Central Billing Management System (CBMS) for the time being.