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E-invoicing for companies with combination turnover exceeding ₹10 crore shall be necessary from October 1. Presently, e-invoice is obligatory for companies with an annual turnover of over ₹20 crore
Following the advice by the GST Council, Finance Ministry has issued a notification for decreasing the brink. E-invoicing prescribes a standardised format of an bill {that a} machine could be learn. It’s a system through which B2B invoices are authenticated electronically by the Items & Companies Tax Community (GSTN) for additional use on the widespread GST portal.
Below the digital invoicing system, an identification quantity shall be issued in opposition to each bill by the bill registration portal (IRP) to be managed by the GSTN. Companies for which e-invoicing is remitted and if they don’t, their bill is not going to be legitimate. In such a state of affairs, enter tax credit score (ITC) on the identical can’t be availed by the recipient, apart from attracting relevant penalties.
On July 3, BusinessLine reported decreasing the brink in two phases – first for companies with turnover over ₹10 crore after which to over ₹5 crore. Earlier, in an interview with this newspaper, Income Secretary Tarun Bajaj had mentioned e-invoicing began with these having an annual turnover of ₹500 crore, then introduced all the way down to ₹100 crore and to ₹20 crore. Now the plan is to deliver it down first to ₹10 crore after which to ₹5 crore.
“Timeline for decreasing the brink to ₹10 crore is there, however earlier than that, we wish stability within the IT system. The variety of assesses between ₹10 crore and ₹20 crore would go up considerably, so we wish to ensure that our IT system is sweet. GSTN is engaged on the plan and they need to be prepared within the subsequent 3-4 months,” he had mentioned.
GST Council suggestion
The GST Council, in its thirty seventh assembly on September 20, 2019, really helpful the introduction of an digital bill (‘e-invoice’) in GST in a phased method. The federal government has already made it clear that necessary circumstances is not going to add a monetary burden on companies as GSTN has empanelled numerous accounting and billing software program merchandise which give fundamental accounting and billing techniques freed from value to small taxpayers.
Empanelled software program
Right here, small taxpayers imply companies having a turnover of lower than ₹1.5 crore. These small taxpayers who don’t have accounting software program right this moment can use one of many empanelled software program merchandise obtainable on-line (cloud-based) in addition to offline (put in on the pc system of the person) mode.
Tax officers say companies use numerous accounting/billing software program, producing and storing invoices of their digital codecs. These totally different codecs are neither understood by the GST System nor among the many techniques of suppliers and receivers. For instance, an bill generated by the SAP system can’t be learn by a machine utilizing the ‘Tally’ system, except a connector is used.
With greater than 300 accounting/billing software program merchandise, there isn’t any strategy to have connectors for all. On this state of affairs, ‘e-invoicing’ goals at machine-readability and uniform interpretation. To make sure this entire ‘inter-operability’ of e-invoices throughout all the GST eco-system, an bill normal is a should. By this, e-invoices generated by one software program could be learn by every other software program, eliminating the necessity for a recent/guide information entry.
Printed on
August 02, 2022
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