Business

GST e-invoicing mandatory for B2B transactions from October

The Indian Govt. are going to make GST e-invoicing necessary for firms with an annual turnover of over Rs 500 crore for business-to-business (B2B) transactions.

According to the report, the new rules may be applicable from October 1, 2020.

Industry representatives, however, have urged the government to not make it mandatory and rather allow voluntary compliance.

The aid, nevertheless, can be there for comparatively smaller companies, as the brink for necessary e-invoicing, a step to enhance tax compliance, was earlier deliberate to be stored at Rs 100 crore, is about to be raised to Rs 500 crore on the suggestions of an empowered panel of the Items and Companies Tax (GST) Council.

The preliminary date for its rollout was April 1, 2020, however, the Centre notified October 1, 2020, because of the revised date for the implementation of e-invoicing.

As per the website of the Good and Service Network ‘e-invoicing' has many advantages for businesses such as standardization, interoperability, auto-population of invoice details into GST return and other forms (like an e-way bill), reduction in processing costs, reduction in disputes, improvement in payment cycles and thereby improving overall business efficiency.

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