e-Invoice system is a very well organized and transparent system of invoicing. e-Invoicing system has been introduced with the objective of reducing tax fraud and bringing more transparency in the tax collection system. And this may be one reason why the government is considering extending the scope of e-Invoices to medium & small businesses.
Government introduced e-Invoicing system wef October 1, 2020, for businesses with turnover exceeding Rs.500 crore. By January 1, 2021, this limit would be substituted by Rs.100 crore vide the amendment made in the notification 13/2020- Central Tax, dated 21st March 2020. As such, the government has made this amendment in the threshold limit of e-invoicing; consequently, small businesses have come under the ambit of e-Invoicing.
Government has given an additional 3 months to Medium Enterprises to help them to implement e-invoicing. Government intends to implement it for small businesses as well from April 1, 2021. It will help small businesses as the invoices data will auto-populate their returns and they will only have to pay taxes.
Invoices are shared with Dealers and Customers in hard or soft copy or both, as per the convenience of the parties. Creating invoices, generating e-way bills on government portal & finally entering details of invoices in GST Returns are all separate activities & require a lot of effort and are prone to errors and omissions. Now with e-Invoicing system, all these activities will be done simultaneously in the system.
Additionally, e-Invoices have made a big difference in working in the businesses in the GST context, with the unified format, data auto-population, and sharing with the recipients. It can be said that e-Invoicing is a great success in the Indian market and as per the initiatives of the Government towards improvement, it is expected to get better. To comply with the requirements of e-Invoicing system, Small and Medium Enterprises have to make proper arrangements for IT software. It is important for taxpayers to find easier ways of complying with e-Invoicing.
Webtel has introduced India’s best e-invoicing solution for taxpayers. With Webtel integrated e-Invoicing solution, you can generate, print, and track e-Invoices easily where you receive top of the line security for your data and a team of GST experts just a call away if you get stuck at any step during e-Invoicing. The icing on the cake is that all of this is available to you at an affordable price. Do check it out here!
So readers, what do you think - Will GSTIN widens the range of the e-Invoicing system for all B2B transactions by April 2021 or not?
Tell us in the comments section below!