Govt. has now come up with another move aimed at curbing the act of generating fake invoices and GST evasion. All invoices for B2B sales by entities beyond a specified turnover threshold will be generated on a centralized government portal by the month of September. The revenue secretary is monitoring the progress of implementation of electronic or e-invoice project for which an officers’ committee has already been set up. In the words of an official, “E-invoice for B2B transactions will be rolled out in next three-four months in a phased manner. The entire invoice would have to be generated on a government portal”. The move will help in curbing Goods and Services Tax (GST) evasion through the issue of fake invoices. And, would also make the return filing process easier for businesses as invoice data would already be captured by a centralized portal.
“Once rolled out, the e-invoice project will allow businesses to simultaneously generate e-way bill if needed,” the official added. E-way bill is required for moving goods exceeding Rs 50,000. Depending on the success of the project in the B2B segment, the revenue department might extend it to B2C sales, especially in sectors where the probability of tax evasion is high. Businesses beyond the specified turnover threshold, to be decided later, would be provided software which will be linked to the GST Network (GSTN) or a government portal for generating e-invoice. The threshold can also be fixed on the basis of the value of the invoice.
The e-invoice generation method will be similar to the one being followed on the GSTN portal. A 13-member officers’ committee, comprising central and state tax officials as well as the GST Network Chief Executive, has been set up to look into the feasibility of introducing e-invoice system to streamline the generation of invoices and easing the compliance burden. The committee will finalize its interim report this month.