According to a notification by the Central Board of Indirect Taxes & Customs (CBIC), Government is set to mandate Electronic-invoicing (e-invoicing) under the Goods and Services Tax (GST) regime for business entities with a turnover of INR 50 Crore & more from April 1, 2021 (start of next financial year) for business to business transactions.
- It is the 3rd Phase of mandatory e-invoicing under the GST regime. The 1st phase of e-invoicing covered business entities with INR 500 Crore turnover & the 2nd phase covered entities with INR 100 Crore.
- E-invoicing is mandatory under Central Goods and Services Tax (CGST) Rules, 2017.
Benefits
- To bring transparency in sales reporting, minimising errors and mismatches.
- Automation of data entry work & improving compliance.
- It will help in the prevention of Tax Evasion.
- E-invoicing facilitates the easy generation of the e-way bill.
e-invoicing
Taxpayers need to generate invoices on their internal system and report them online to the Invoice Registration Portal (IRP) of the Government, which will validate the information and return the digitally signed e-invoices with a unique ‘Invoice Reference Number (IRN)’ along with a QR Code to the taxpayer.
Exempted Sectors
Sectors like Transportation, Insurance and Banking companies, financial institutions, Non-Banking Financial Companies (NBFCs), Goods Transportation agencies, and passenger transportation services & units in Special Economic Zones (SEZs) are exempt from e-invoicing.
Fact
An invoice or a bill of supply need not be issued if the value of supply is less than INR 200 subject to specified conditions.
Recent Related News:
i.On 25th February 2021, the Ministry of Corporate Affairs(MCA) and Central Board of Indirect Taxes and Customs (CBIC) signed an MoU for data exchange between the two organisations.
About Central Board of Indirect Taxes & Customs (CBIC):
It is part of the Department of Revenue under the Ministry of Finance, Government of India
Chairman – M Ajit Kumar
Head Office – New Delhi
