The introduction of e-invoicing in the Good and Services Tax (GST) system is one of the trending topics these days. In the E-invoicing facility invoices are electronically registered by the Invoice Registration Portal (IRP) to be used on the common GST portal. According to the recent notifications, it is mandatory for the firms with an annual turnover above ₹ 500 crores to initiate the generation of their e-invoices from October 1, 2020.
For taxpayers having turnover more than INR 100 crore, the Government will make B2B GST e-invoicing mandatory from January 1st, 2021, and for all taxpayers, the same will be mandatory from April 2021. Need of e-invoicing
The purpose of e-invoicing is to provide taxpayers with better services by restricting multiple reporting and improving the filing of new returns. The new GST e-invoice system will help to prevent tax evasion and also check and track fake and fraudulent invoices.
This new system will help to establish an audit trail of B2B invoices that will allow computerized credit matching. In addition, it will allow the system's interoperability, standardization of data, and reporting in a centralized system that can overcome judicial challenges. Myths and Facts About e-invoicing
Myth 1: E-invoice has to be generated through the GST portal.
Fact: The tax invoices can be still generated from the present ERP system. It will only need to be registered on IRP. Myth 2: E-Challan applies to all. Fact: For firms with an annual turnover above ₹ 500 crores, it is mandatory to generate their e-invoices from October 1, 2020. For taxpayers with turnover more than INR 100 crore, the B2B e-invoicing will be mandatory from January 1st, 2021, and for all taxpayers, it will be mandatory from April 2021. Myth 3: A new software or ERP system will be required for e-invoicing. Fact: No, there is no new software required for r-invoicing. The Existing software will be modified for the E-invoicing features. Read Also: All About GST E-Invoice Generation System on Portal with Applicability Steps to Create An Invoice
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AuthorI am Amit Gupta. I like to write posts about chartered accountants' topic. |