Now e-bill will be compulsory for small business with above Rs 50 crore turnover from April 1

The governing administration has now manufactured it compulsory for organizations with over Rs 50 crore turnover to produce e-invoices for B2B transactions from April 1.

Less than Goods and Providers Tax (GST) legislation, e-invoicing for small business-to-business enterprise (B2B) transactions has been built mandatory for providers with turnover of about Rs 500 crore and Rs 100 crore from Oct 1, 2020, and January 1, 2021, respectively.

E-invoicing will be prolonged to companies with turnover around Rs 50 crore from April 1, the Central Board of Oblique Taxes and Customs (CBIC) said in a notification.

Underneath e-invoicing, taxpayers have to make invoices on their inside systems (ERP/accounting/billing software) and then report them on-line to the Invoice Registration Portal (IRP).

The IRP will validate the information delivered in the invoices and return the digitally signed e-invoices with a one of a kind ‘Invoice Reference Number (IRN)’ together with a QR Code to the taxpayer.

EY Tax Partner Abhishek Jain said e-invoicing has been created obligatory for enterprises for Rs 50 crore additionally turnover from April 1, which showcases the proactiveness and the intent of the governing administration to broader the web of digitisation.

“As restricted time is remaining, marketplace players in this phase will require to proactively map out the IT and course of action adjustments and start out employing the same,” Jain extra.