The businesses that have a turnover of more than Rs. 500 crore shall issue ‘e-invoicing’ with a Quick Response (QR) code from 1st April.
This amongst several additional provisions is part of five notifications, which has been issued by the Central Board of Indirect Taxes and Custom (CBIC) towards bringing in place the system of ‘e-invoicing’. The latest system of invoicing has been made compulsory for businesses who have a turnover of Rs 100 crore or above from 1st April.
E-invoicing’ can be defined to be as a system in which invoices are electronically authenticated through GSTN (GST Network, the IT backbone for the new indirect system) for further usage on the common GST portal. This system shall suggest an identification number that would be issued against each invoice by means of the Invoice Registration Portal (IRP) and that is to be managed by the GSTN. All the information on the invoices shall be transferred from this portal towards both the GST portal as well as the e-way bill portal in real-time. Thus, it would reduce the requirement for manual data entry while filing ANX-1 (Annexure 1, part of new return mechanism which is going to be applied from 1st April)/GST returns and generation of part-A of the e-way bills, as the information shall be passed directly through the IRP to GST portal.
B2C Businesses
As per a notification it stated that an invoice is issued through a registered individual, whose aggregate turnover in a fiscal year go beyond five hundred crore rupees, towards an unregistered individual (as referred to as B2C that is, Business to Consumer invoice), would have Quick Response (QR) code, provided that where such registered individual makes a Dynamic Q code available towards the receiver through a digital display, such B2C invoice which has been issued by such registered individual comprising cross-reference of the payment by means of a Dynamic Quick Response QR code, would be deemed to be having QR code.
As per other notifications, taxpayers with turnover of above Rs 100 crore in a year shall be required to make invoice through including such particulars (as contained in FORM GST INV-01), after getting an Invoice Reference Number by means of uploading information contained in that on the specified Portal. Furthermore, unless the stated taxpayers make the invoice in the set manner, the invoice would not be considered as an invoice.
GST Portals
Towards facilitating the preparation of e-invoices, CBIC had also notified 10 Common Goods and Services Tax Electronic Portals, they are -
www.einvoice1.gst.gov.in
www.einvoice2.gst.gov.in
www.einvoice3.gst.gov.in
www.einvoice4.gst.gov.in
www.einvoice5.gst.gov.in
www.einvoice6.gst.gov.in
www.einvoice7.gst.gov.in
www.einvoice8.gst.gov.in
www.einvoice9.gst.gov.in
www.einvoice10.gst.gov.in
Conclusion
It could be said that the notification for applying e-invoicing for a stated class of businesses further promotes the Government's intention of mandatorily executing this by April next year. The businesses shall require this on priority to execute an "as is" mapping in their present invoicing system through the new prerequisite and begin executing the necessary changes in IT procedures that are to be ready for this new change.
However, the GST payers have expectations that before the new e-invoicing system is applied, it must be confirmed that suitable testing has been carried out and the GST portal is considered to make it robust.
“Furthermore, it might be noted that for GST payers the GST procedures, returns, as well as systems, are constantly changing and therefore, the Government must provide suitable time relating to the application of e-invoicing to be made available in the public domain and also must interact in well-in-advance, with the large taxpayers for comment on the same.
The GST Council, in its 35th meeting, had decided to apply the new system while the standard was implemented during the 37th meeting. The main plan is that businesses who have a turnover of Rs 500 crore or above shall take up e-invoicing from 1st January 2020 on a voluntary and trial basis whereas the businesses that have a turnover of Rs 100 crore or above shall start e-invoicing on voluntary and trial basis from 1st February 2020. Though, it would be mandatory for both the categories from 1st April 2020 whereas for businesses who have turnover below Rs 100 crore, it shall remain voluntary and on trial basis from 1st April.
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