The authorities has now made it compulsory for companies with over Rs 50 crore turnover to generate e-invoices for B2B transactions from April 1.
Under Goods and Services Tax (GST) regulation, e-invoicing for business-to-business (B2B) transactions has been made necessary for corporations with turnover of over Rs 500 crore and Rs 100 crore from October 1, 2020, and January 1, 2021, respectively.
E-invoicing will be prolonged to corporations with turnover over Rs 50 crore from April 1, the Central Board of Indirect Taxes and Customs (CBIC) stated in a notification.
Under e-invoicing, taxpayers should generate invoices on their inner techniques (ERP/accounting/billing software program) after which report them on-line to the Invoice Registration Portal (IRP).
The IRP will validate the data offered within the invoices and return the digitally signed e-invoices with a novel ‘Invoice Reference Number (IRN)’ alongside with a QR Code to the taxpayer.
EY Tax Partner Abhishek Jain stated e-invoicing has been made necessary for companies for Rs 50 crore plus turnover from April 1, which showcases the proactiveness and the intent of the federal government to wider the web of digitisation.
“As limited time is left, industry players in this segment will need to proactively map out the IT and process changes and start implementing the same,” Jain added.
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