October 27, 2020

Enterprise with turnover above Rs 500 crore to generate e-invoice for B2B transactions

NEW DELHI: Companies with turnover of Rs 500 crore and above will generate all B2B invoices on a centralised authorities portal beginning October 1. The Central Board of Oblique Taxes and Customs (CBIC) has notified the revised format for e-invoice beneath GST by changing current type and in addition elevated the turnover threshold for companies who should generate e-invoice for B2B transactions.

With this, the e-invoice beneath Items and Providers Tax (GST) might be relevant for GST-registered companies having turnover above Rs 500 crore with impact from October 1, 2020.

Additionally, SEZ items have been excluded from e-invoicing.

The e-invoice was geared toward curbing GST evasion by subject of faux invoices. Moreover, it will make the returns submitting course of less complicated for companies as bill knowledge would already be captured by a centralised portal.

In November final yr, the federal government had stated that from April 1 digital bill (e-invoice) could be necessary for companies with turnover of Rs 100 crore. Later in March 2020, the GST Council prolonged the implementation date to October 1.

The Council additionally exempted insurance coverage, banking, monetary establishments, NBFCs and passenger transport service from issuing e-invoice.

EY Tax Companion Abhishek Jain stated: “With solely 60 days to this compliance, companies would want to shortly consider the ERP adjustments wanted and plan implementation effectively to make sure compliance from October 1″.

AMRG & Associates Senior Companion Rajat Mohan stated new codecs for an e-invoice has been prescribed eyeing the implementation from October 1, 2020.

“Massive corporates with turnover of over Rs 500 crores now have solely 2 months to implement E-invoice digital module throughout varied expertise platforms, which might change the principles of sport in Enterprise to Enterprise (B2B) transactions,” he stated.

GSTN will now have entry to extra real-time knowledge round enterprise transactions giving impetus to excessive stage knowledge analytics, Mohan added.