E-invoice mandatory for turnover of 50 crores or more - Important amendment of Government of India.

If you fill the GST, then learn how to make bills in a new way. The government is going to make an e-invoice billing system necessary for GST. new Delhi. E-invoices will be mandatory for all businesses with a turnover of 50 crores or above from 1 April. Now it has become compulsory for businessmen to prepare the existing billing system according to this e-invoice. From now on, all business invoicing will have to meet the minimum requirement of e-invoicing. Let's understand what e-invoicing is and how it will work. The full form of an E-invoice is Electronic invoicing.

This article is written by our Experienced Educarehub Channel team member Dimpal Singh. 

What is e-invoicing?

E-invoice refers to an electronically generated bill. Which will be further authenticated through the Government Invoice Registration Portal (IRP) on the GST portal. Each invoice undergoing IRP will get a unique identification number. This detail will be available to the customer (invoice recipient).

What is the use of e-invoice?

It can be used to keep a record of customer transactions. Tax authorities can make tax assessments. GST returns like GSTR-1 and GSTR-2A / B will be filled automatically by e-invoice.

What will change in business?

There will be a lot of change. Every business-to-business transaction will be monitored by the government. The raw bills will be eliminated, as the entire supply chain will operate through e-invoicing. Wholesale sales figures have already been received by the officials of the tax department through e-invoices, now retail sales figures will also be accessible.

Didn't use an e-invoice?

Since B2B invoices will have real-time reporting, all businesses involved in this supply chain are required to follow e-invoices. There is a provision for the penalty of 10,000 rupees per invoice for not using an e-invoice.

What will be the benefit of e-invoicing to businessmen?

Digitization is happening all over the world. The current system of business and billing will be completely transparent and digitized through e-invoicing. Most of the accounting and data entry work will be automated and manual work will be reduced. A very accurate and timely record of every transaction will be maintained. The scope of the mistake will be less and it will be easier to make the payment on time. Big businesses also like to work with the same businesses whose accounts are correct and accurate. Through this digitization, small businesses will also be able to move forward on the path of progress.

An important fact of e-invoice

To curb TAX piracy, e-invoice is compulsory from the new year onwards for companies with more than 100 crore turnover, IRN will be generated for every transaction. The market lacked a standard challan system and with e-challan, the GST Council has introduced a new standard in consultation with the ICAI (Institute of Chartered Accountants of India), the statutory body regulating the practice and profession of chartered accountants in India. The standard is modeled on the Pan European Public Procurement Online (PEPPOL) which is based on the Universal Business Language Standard (UBL). If you feel to hire an expert in this field just consult with a chartered accountant or Company Secretary course completed professionals they will guide you very well.

This standard has been chosen because it takes into account requirements under statutory tax laws as well as compliance with international trade practices. The standard also does not allow for the generation of multiple fields of data required to be reported under the GST regime. The e-invoice proposal was also kept open for public use for extended periods of time so that members of the business community and other stakeholders could comment and suggest improvements.