The governing administration has notified necessary prerequisite of e-invoicing for B2B transactions for companies with a turnover more than Rs 100 crore with impact from January 1, 2021. Beneath Goods and Services Tax (GST) regulation, e-invoicing for organization-to-enterprise (B2B) transactions is required for companies with turnover of in excess of Rs 500 crore from Oct 1.
In a notification, the Central Board of Indirect Taxes and Customs (CBIC) explained e-invoicing will be prolonged to organizations with a turnover over Rs 100 crore from January 1.
Less than e-invoicing, taxpayers have to deliver invoices on their inside techniques (ERP/accounting/billing software) and then report it on the web to the Bill Registration Portal (IRP).
The IRP will validate the information supplied in the invoices and return the digitally signed e-invoices with a special ‘Invoice Reference Amount (IRN)’ along with a QR Code to the taxpayer.
Deloitte India Senior Advisor Prakash Kumar explained this will further support in curbing tax evasion and escalating tax collections.
“Having said that, likely by the resounding accomplishment of the Oct 1 rollout for the greater corporations, MSMEs far too really should in truth be capable to comply with the new prerequisite,” Kumar extra.
EY Tax Associate Abhishek Jain claimed “With only somewhere around 50 much more times, these mid-sized organizations would need to quickly equipment up their processes/ IT programs to help compliance with this new invoicing regulation”.
Nangia Andersen India Director Tanushree Roy said with only a number of times still left, these companies would need to equipment up their IT and invoicing units as perfectly as educate their workers to comply with this new compliance necessity.
“Although this go of the authorities would aid in automating the tax compliances, this is also anticipated to lead to effective management of tax compliances,” Roy extra.
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