The Central Board of Indirect Taxes & Customs, in their recent notifications, mentioned compulsory e-invoicing under Goods and Services Tax (GST) starting from the 1st of October 2020, for all the entities whose annual turnover is of ₹500 crores or more. It further mentioned that the decision to increase the threshold for e-invoicing from ₹100 crores to ₹500 was taken on the GST Council’s recommendation. In another notification from the CBIC, a few changes that need to be made to the e-invoicing scheme was also mentioned.
The authorized pan of the GST Council recommended that the CBIC can roll out the e-invoicing from the 1st of October 2020. It further excluded all the entities whose annual turnover is up to ₹500 crores.
We at Amsan Technology provide end to end support for e-invoicing.
E-invoicing, in general parlance, means electronic invoicing. E-invoicing is a process of submitting a sales invoice in an invoice in an Invoice Registration Portal (IRP) designated by GSTN.
The concerned business entities can make use of Cleartax to make their e-invoicing. Cleartax is a Bengaluru based Financial –Technology platform created to provide solutions for income tax filing, GST, and Mutual Fund investments. We are the official partner of Cleartax and provide consultancy to businesses.
The entries can automate most of the data entry, which results in increased productivity, reduced errors, and mismatches save time and minimize duplication of work. It also collects the sales-related details from the system and improves compliance. The main aim of e-invoicing is to enhance the trust of the tax officials in compliance with entities and reduce the chances of audits and surveys.
The authorized GST authorities planned the e-invoicing only for B2B transactions and not for B2C transactions. It is mainly helpful for auto-populating certain annexures which are significantly crucial in GST return filing. The increase in the threshold from ₹200 crores to ₹500 crores would help large business entities to go ahead and adopt this system and to set an example to the smaller business entities.
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