Now e-invoice will be compulsory for enterprise with around Rs 50 crore turnover from April 1

The governing administration has now designed it obligatory for organizations with in excess of Rs 50 crore turnover to generate e-invoices for B2B transactions from April 1.

Underneath Merchandise and Solutions Tax (GST) legislation, e-invoicing for organization-to-enterprise (B2B) transactions has been produced necessary for organizations with turnover of over 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 above 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 crank out invoices on their internal systems (ERP/accounting/billing program) and then report them on the web to the Invoice Registration Portal (IRP).

The IRP will validate the facts supplied 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 Husband or wife Abhishek Jain said e-invoicing has been manufactured required for enterprises for Rs 50 crore additionally turnover from April 1, which showcases the proactiveness and the intent of the governing administration to wider the internet of digitisation.

“As limited time is left, sector players in this section will require to proactively map out the IT and course of action improvements and start out employing the exact,” Jain additional.