The notification regarding issue of e-invoices by the registered taxpayers having a turnover above ₹ 500 crores has been issued by the GST Council. It is optional to issue from 1st Jan 2020 and mandatory from 1st April 2020.
E-invoice has been implemented for B2B (Business to Business) and B2G (Business to Government).
E-invoicing is the system through which B2B transactions are authenticated electronically by GSTN. Under e-invoicing system, as soon as the invoice is made, it will be uploaded to GSTN portal where pre-validation will be done and a unique number called IRN (Invoice Reference Number) will be issued. Once IRN is issued, the tax invoice will be shared with the recipient also. Once IRN is issued, it will update the Annexure 1 of the Supplier & if e-waybill is required to be issued, Part A of the same will be updated. It will also update the Annexure 2 of the recipient.
Against current manual errors in GST filing, e-invoicing can encourage user friendly automation, speed and accuracy to return filing process. Large organizations will have to make some corrective changes in their softwares so as to cope up with this e-invoicing system. Training has to be provided to all the stakeholders for the required implementation. Even the use of professionals will not make it easy for companies to make precise changes. Softwares like ERP, distribution management systems from can help to tackle these issues.
E-invoicing can overall provide big push to the economy and help to minimise tax evasion. Currently, now and then, big scams are revealed by data analytic department. E-invoicing will help to increase income for the department.