The authorities has now made it compulsory for firms with about Rs 50 crore turnover to deliver e-invoices for B2B transactions from April 1.
Under Goods and Products and services Tax (GST) law, e-invoicing for enterprise-to-business enterprise (B2B) transactions has been produced obligatory for firms with turnover of more than Rs 500 crore and Rs 100 crore from October 1, 2020, and January 1, 2021, respectively.
E-invoicing will be extended to firms with turnover around Rs 50 crore from April 1, the Central Board of Oblique Taxes and Customs (CBIC) said in a notification.
Below e-invoicing, taxpayers have to generate invoices on their inside techniques (ERP/accounting/billing software) and then report them on-line to the Bill Registration Portal (IRP).
The IRP will validate the information and facts offered in the invoices and return the digitally signed e-invoices with a unique ‘Invoice Reference Quantity (IRN)’ alongside with a QR Code to the taxpayer.
EY Tax Companion Abhishek Jain explained e-invoicing has been built necessary for companies for Rs 50 crore plus turnover from April 1, which showcases the proactiveness and the intent of the government to broader the web of digitisation.
“As minimal time is remaining, business gamers in this segment will have to have to proactively map out the IT and process adjustments and start applying the same,” Jain added.