E-invoice under GST
The all-powerful GST Council has decided to introduce concept of e-invoicing under GST. This concept has been introduced in order to curb tax evasion which will be implemented in phased manner. The taxable person which falls under a certain threshold will be given a unique number whenever an e-invoice will be generated.
Criteria for Applicability of E-Invoicing
On 13th December, 2019, CBIC has issued several notifications and made some changes in the procedure of issuing invoices by some registered person. The key changes are:
- The e-invoicing will be available from 1st January, 2020 on a voluntary basis. It will be implemented in a phased manner by GSTN.
- The generation of E-invoice will be mandatory from 1st April, 2020 for businesses having turnover of Rs. 100 crore or more.
- The Quick Response (QR) code will be mandatory from 1st April, 2020 for B2C invoices issued by suppliers having aggregate turnover in a financial year exceeding Rs. 500 Crore
How to generate E-Invoice
From 1st January, 2020, the following portals shall be used for the purpose of preparation of e-invoices:
- (i) einvoice1.gst.gov.in
- (ii) einvoice2.gst.gov.in;
- (iii) einvoice3.gst.gov.in;
- (iv) einvoice4.gst.gov.in;
- (v) einvoice5.gst.gov.in;
- (vi) einvoice6.gst.gov.in;
- (vii) einvoice7.gst.gov.in;
- (viii) einvoice8.gst.gov.in;
- (ix) einvoice9.gst.gov.in;
- (x) einvoice10.gst.gov.in;
Benefits of E-Invoice
E-invoice resolves and plugs a major gap in data reconciliation under GST to reduce mismatch errors. E-invoicing will surely help the taxpayers to reduce compliances related to uploading of invoices. Tax authorities will have the access of all transactions as transactions will take place in real-time basis since e-invoice will have to be compulsorily generated through the GST portal. It will help in automation of the tax return filing process as all the relevant details of the invoices would be auto-populated and it will provide faster availability of input tax credit.