GST E-Invoicing to Be Mandated Soon for the Business Having Rs. 10-Cr or More and Then 5-Cr Turnover
Businesses having turnover more than Rs. 5-Cr will soon come under the GST invoice. To this day, the threshold limit of e-invoicing is Rs. 20 Cr. Businesses that exceed the 20-crore turnover need to generate e-invoices either with the Government GST portal or using the Best GST Billing Software in the format mandated by the GSTN council. Each e-invoice has a unique identification code that is provided by the Invoice registration portal (IRP). A unique identification code enables machines to read the invoice info and identify them. Invoices not generated in proper format are considered to be invalid.
Speaking in an interview with The Hindu Business Line, Revenue Secretary Tarun Bajaj says that the timeline for lowering the e invoice limit is still not determined, but it may implement in the upcoming months. In the coming phase, e-invoices will be applicable to businesses having a turnover 10 Cr or more and then 5 Cr or more. He emphasized stabilizing the IT system as the number of assesses would go up in near future and without a robust IT system, it’s not possible to bring businesses having 5 Cr turnover into invoicing slab. He further stated that the GSTN council is working on implementing new e-invoicing rules and it may implement in a few months.
The government has made it clear that the new invoicing system will not increase the financial burden of traders as the GSTN is updating the portal for hassle-free e-invoice generation. The GSTN council introduced electronic invoicing in its 37th meeting on September 20, 2019, in a phased manner.
GST Billing Software Facilitating e-Invoicing
Implementation of a new e-Invoicing system brings many new complications, which are better handled by GST Return File and Billing software. GSTN council has clarified that such software must comply with the parameters set by the council. The e-Invoice generated through third-party billing software must be read and understood by the machine. According to GSTN, many such GST billing software is generating e-invoices in different formats that are neither understood by the GST system nor by the systems of supplier and receiver.
