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CBIC ENABLES E-INVOICING SYSTEM, MANDATORY FOR BUSINESSES WITH RS 100 CRORE TURNOVER FROM APRIL 1, 2020

  • Posted By SuperCA
  • On 04 January

CBIC ENABLES E-INVOICING SYSTEM, MANDATORY FOR BUSINESSES WITH RS 100 CRORE TURNOVER FROM APRIL 1, 2020

For businesses having turnover less than 100 Crore, it would remain voluntary and on trial basis from 1st April 2020.
The upcoming ‘E-invoicing’ system will be a boon to MSMEs as it will open the facility of instant bank loans for MSMEs. With the new system of E-invoicing, banks may not require a plethora of physical documents and their validation processes rather they can do MSMEs’ ratings for the loan on the basis of their e-invoicing. Also, the E-invoicing will bring in ease of doing business as it will pre-populate the GST returns besides reducing the reconciliation problems. In the Notification, the CBIC has also notified the GST electronic portals for the generation of e-invoice and E-Invoice Rules. Having done a full preparation for last 6 months to introduce E-invoicing system, the government has decided to start ‘E-invoicing’ in a phased manner for generating business to business (B2B) invoices on a voluntary basis. It has been decided by the government that businesses having a turnover of Rs.500 Crore or more would take up E-invoicing from 1 st January 2020 on voluntary and trail basis while the businesses with a turnover of Rs.100 Crore or more would start E-invoicing on voluntary and trial basis from 1st February 2020. However, from 1st April 2020, the E-invoicing will be mandatory for both these businesses categories. For businesses having turnover less than 100 Crore, it would remain voluntary and on trial basis from 1st April 2020.

The basic aim behind the adoption of the e-invoice system is to facilitate convenience to the taxpayers by further simplifying the GST Return system. Through E-invoicing the tax department would help the businesses and taxpayers by pre-populating the returns and this would also result in reducing the reconciliation problems. Actually the fundamental principle behind introducing the e-invoicing is to put the technology at the service of the people to create ease of living and ease of doing business.

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