GST E-invoicing Must for All B2B Transactions From April 1, 2021

Last Updated at: January 13, 2021
1390
GST E-invoicing

From 1st April 2021, electronic invoicing (GST e-Invoicing) will become a must for businesses with an annual turnover of more than Rs 100 crore. The Honourable Finance Secretary announced this on 8 October 2020. He said this step would help curb GST evasion and would make corporate compliance easier. 

The launch of the new e-invoicing system was scheduled initially for 1 April 2020. However, that was postponed to the 1st of October, given the COVID-19 pandemic. From 1st October, the Government has rolled out the e-invoicing system for businesses with an annual turnover of over Rs 500 crore. Mr. Pandey said, by 1st January 2021, the system will be available to taxpayers with an annual turnover of more than Rs 100 crore. 

Get Online GST Registration

In the set up, the systems of the companies link to the GSTIN portal. The invoices that generate by the business will upload to the GSTIN portal within 24 hours. The new e-invoicing system will soon replace physical invoicing – and the existing e-waybill system as well. It will give real-time information of invoices to both the buyers and the sellers. The taxpayers will not need to generate separate e-waybills. Also, it is expects to boost invoice lending for the MSMEs. With e-invoicing in place, banks will not require to validate a whole lot of physical documents. The payment cycle for the industry expects to improve as well. Thus, the new e-invoicing system will benefit both the tax administration and businesses, in some way or another. 
Under the Indian taxation system, all the goods and services are categorized into 6 slabs. It is significant for all business people to know under which category their goods or services fall. The GST rate finder service is used to find the GST rates of all the goods and services. This service is also referred to as the HSN finder. By using the HSN finder, we can also find the HSN codes for goods and services.

 

Mr. Pandey said that the government has been reviewing the progress of implementation in the last week and encouraging signs have been observed in this regard. This new system is expects to contribute immensely towards taxation and the ‘ease of doing business’ in India. The response from the users has been overwhelming as well. Further, On 1 October 2020, the very first day of this new system, over 8.40 lakhs Invoice Reference Numbers (IRNs) has generation by almost 8500 users. Between the beginning and end of the first week of October, the generation of IRNs has increased by a whopping 163%. As of 7 October 2020, over 69.5 lakh IRNs have been generated by over 71000 users in the new system. 

Here is the sample GST e-invoicing for GST
GST E-invoice

 

0

GST E-invoicing Must for All B2B Transactions From April 1, 2021

1390

From 1st April 2021, electronic invoicing (GST e-Invoicing) will become a must for businesses with an annual turnover of more than Rs 100 crore. The Honourable Finance Secretary announced this on 8 October 2020. He said this step would help curb GST evasion and would make corporate compliance easier. 

The launch of the new e-invoicing system was scheduled initially for 1 April 2020. However, that was postponed to the 1st of October, given the COVID-19 pandemic. From 1st October, the Government has rolled out the e-invoicing system for businesses with an annual turnover of over Rs 500 crore. Mr. Pandey said, by 1st January 2021, the system will be available to taxpayers with an annual turnover of more than Rs 100 crore. 

Get Online GST Registration

In the set up, the systems of the companies link to the GSTIN portal. The invoices that generate by the business will upload to the GSTIN portal within 24 hours. The new e-invoicing system will soon replace physical invoicing – and the existing e-waybill system as well. It will give real-time information of invoices to both the buyers and the sellers. The taxpayers will not need to generate separate e-waybills. Also, it is expects to boost invoice lending for the MSMEs. With e-invoicing in place, banks will not require to validate a whole lot of physical documents. The payment cycle for the industry expects to improve as well. Thus, the new e-invoicing system will benefit both the tax administration and businesses, in some way or another. 
Under the Indian taxation system, all the goods and services are categorized into 6 slabs. It is significant for all business people to know under which category their goods or services fall. The GST rate finder service is used to find the GST rates of all the goods and services. This service is also referred to as the HSN finder. By using the HSN finder, we can also find the HSN codes for goods and services.

 

Mr. Pandey said that the government has been reviewing the progress of implementation in the last week and encouraging signs have been observed in this regard. This new system is expects to contribute immensely towards taxation and the ‘ease of doing business’ in India. The response from the users has been overwhelming as well. Further, On 1 October 2020, the very first day of this new system, over 8.40 lakhs Invoice Reference Numbers (IRNs) has generation by almost 8500 users. Between the beginning and end of the first week of October, the generation of IRNs has increased by a whopping 163%. As of 7 October 2020, over 69.5 lakh IRNs have been generated by over 71000 users in the new system. 

Here is the sample GST e-invoicing for GST
GST E-invoice

 

0

No Record Found
SHARE