The turnover limit for businesses for e-invoicing is likely to be fixed at Rs 50 crore. This means big taxpayers who are having better technology should generate their e-invoice on GOVT portal for B2B sales. They should start e-invoicing right from September 2019. The official said 1 crore invoice generation/day can be handled by GOVT portal.
Just look at the numbers: ✔ 68,041 businesses have turnover > Rs 50 crore. ✔ They account for just 1.02% of GST payers. ✔ Almost 30% of the B2B invoices are generated by them.
Here’s how advantageous e-invoicing can be to both companies and GOVT: ✔ With e-invoice generation, companies don’t have to waste time on filing returns and uploading invoice-wise details.
✔ In the current system, there is a gap between the time of creating invoices and filing returns. The gap could be either because of the difficulty in uploading invoices or with the intention of misusing Input Tax Credit (ITC). ✔ From the GOVT’s side, e-invoicing would help in restricting invoice misuse and tax evasion. ✔ Thus, e-invoice would increase the ease of doing business. ✔ There is no need for additional reporting if one is using this method which will save a lot of time.
Source: Business Standard
What do you think about this decision? Please comment below.