Businesses who have a turnover above Rs 100 crore will have to generate e-invoice for B2B deals from January 2021
There’s been an uptake in e-invoicing with over 69 lakh invoices reference number (IRN) generated between October 1-7.
According to a report by The Economic Times, On the first day of the e-invoicing system nearly more than 8.4 lakh IRNs were generated by 8453 users and on October 7, more than 13.69 IRN were generated by 14,100 users.
Finance Secretary, Ajay Bhushan Pandey said to ET, “It is a great step forward as e-invoicing has many advantages both for the business and the tax administration. Buyers and sellers will be able to have real time information of the invoices.”
The e-invoicing system for B2B transactions was implemented on a compulsion basis for companies with turnover above Rs 500 crore kicked into effect from October 1.
The electronic invoicing system for business to business transactions was implemented on a mandatory basis for companies with turnover above Rs 500 crore kicked into effect from October 1.
Pandey added, “E-invoicing replaces the physical invoice and will soon replace the existing e-way bill system and taxpayers will not have to generate separate e-way bills.”
He said, “”Furthermore, the e-invoicing system can also eventually dispense with the present system of filing GST returns for smaller businesses and MSMEs because e-invoice will pre- populate their returns and they have to simply pay the taxes. The returns will be automatically generated for all supplies for which e-invoice have been issued.”