GST E-Invoicing for all B2B transactions from 1 April 2021
e-way bill is an electronic document showing GST due is paid, and is required for the movement of goods. From October 1, e-invoicing is mandated for businesses with annual turnover of more than ₹500 crore. By January 1, it will be available to taxpayers having turnover more than ₹100 crore a year. It will be finally made available to all taxpayers for B2B transactions from April 1, 2021.
Electronic invoicing (e-invoicing) for Goods and Services Tax (GST) will be made mandatory for all business-to-business transactions from April 1 next year as it looks to do away with physical invoices and plug revenue leaks. This is as per the government intention to take no chance of revenue leakages despite E way bill and other checks on goods
Finance secretary, Mr. Ajay Bhushan Pandey said that “the government will roll out the electronic invoicing (e-invoicing) system for all business-to-business (B2B) transactions under the Goods and Services Tax (GST) regime from April 1 next year that will replace physical invoices”
“It replaces the physical invoice and will soon replace the existing e-way bill system and taxpayers will not have to generate separate e-way bills,” he said.
He further said that “the government introduced the e-invoicing system on October 1, 2020, for businesses with an annual turnover over Rs 500 crore. By January 1, 2021, it will be available to taxpayers with an annual turnover over Rs 100 crore and we are intending to implement to all B2B translations from 1 April 2021
E-invoicing in GST introduction plan
|B2B transactions for all businesses above INR 500 crores.||Effective from October 1, 2020.||Notification|
|B2B transactions for all businesses above INR 100 crores.||Effective from January 1, 2021.||Confirmed by Finance Secretary and Notification expected|
|B2B transactions for all other businesses registered in GST.||Effective from April 1, 2021.||Confirmed by Finance Secretary and Notification expected|
Note : The above is source based information
All the Business should well be prepared in advance for introduction of E Invoicing and keep system and software ready for implementation.
On the performance of the e-invoicing scheme, Pandey said: “This is the beginning of a new chapter on the ease of doing business and paying taxes in India,” he said. From October 1 to October 7, Invoice Reference Number (IRN) generation has grown by 163 percent, touching 13.69 lakh IRNs.
“As e-invoicing is an exceedingly progressive system, we expect that it will also have other major advantages of improving the payment cycle for the industry and give a boost to invoice-based lending to MSMEs,” says FS.
According to GSTN and NIC, as per the statistics available, within seven days of the introduction of e-invoicing, more than 69.5 lakh IRNs were generated by about 71,000 users. On the very first day of introduction, more than 8.4 lakh IRNs were generated by 8,453 users, while on October 7, about 13.69 lakh IRNs were generated by 14,100 users. Around 82 percent of IRNs were generated using GSP mode, while 15 percent were generated via direct Application Programming Interface (API) mode.
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