einvoicing Archives | XaTTaX GST Blog

CBIC gives 30-day grace period for those not yet ready for GST e-invoice

October 1, 2020 admin Comments 0 Comment

Businesses not yet prepared for generating Goods and Services Tax (GST) e-invoices despite having got about nine months to prepare for, have been given “one last chance” to avoid penalty and regularise their invoices, the government said late on Wednesday.

The compulsory e-invoicing of business-to-business transactions of companies with more than ₹500 crore sales kicks in from Thursday.

The Central Board of Indirect Taxes and Customs (CBIC) said in a statement that the announcement of this compliance requirement was first made last December and was to be effective from April but was extended to 1 October keeping in mind the hardships faced by businesses. Despite this long notice, some businesses are reportedly still not ready, the tax authority noted. They are now given a chance to ward of penalty if they comply within 30 days.

“As a last chance in the initial phase of implementation of e-invoice,” the invoices issued by such taxpayers during October without e-invoicing “shall be deemed to be valid and the penalty leviable for such non-adherence to provisions, shall stand waived off if the invoice reference number (IRN) for such invoices is obtained from the designated portal within 30 days of the date of invoice,” CBIC said in the statement.

“It may be noted that no such relaxation would be available for the invoices issued from 1 November,” said the statement.

This relief is a ‘win-win’ for the government and businesses with neither the implementation/anti-evasion objective being deferred nor businesses facing penalties for non-compliance, said Abhishek Jain, Tax Partner.

Source: Live-Mint.

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GST e-invoicing to start from Oct 1, as planned: GSTN CEO

September 28, 2020 admin Comments 0 Comment

The plan to introduce the e-invoicing regime from October 1 will not be postponed. This was revealed by GST Network (GSTN) CEO Prakash Kumar at Friday’s BusinessLine Knowledge Series webinar on ‘GST: Is it Really Good and Simple?’

While large companies are ready for this change, small and medium enterprises are not. This had raised hope that the new regime would be postponed.
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Kumar also said the GSTN, the IT backbone of the indirect tax system, will, from November, auto-populate the GSTR-3B returns of taxpayers. “The aim is, from November month returns filed in December, GSTR-3B will be auto-populated. First, we are doing this for monthly tax filers. The entire tax-paying community will be covered after that,” he explained.

Over one crore assesses are eligible to file GSTR 3B returns every month, which shows how much tax has been paid actually after deducting the Input Tax Credit (ITC). GSTR-1 is a monthly return (it can also be filed quarterly) on the outward supply statement and shows the quantum of liability. It is alleged that some assesses over-report ITC, which in turn results in lower tax payment.

GSTN recently started to generate GSTR-3B based on the GSTR-1 filed, Kumar said, adding that for two months PDF documents would be given to taxpayers so that people can check and inform the authorities of any error in the process or computation of tax or the ITC.

Source:thehindubusinessline

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GST Network issues FAQs on einvoicing scheme ahead of Oct 1 launch

September 15, 2020 admin Comments 0 Comment

E-invoicing will not be applicable for business-to-consumer supplies or import bills of entries, while special economic zone units, banking companies, insurers, goods transport agencies and passenger transport companies will be exempt from issuing them.

The GST Network issued clarifications through frequently asked questions on Monday, ahead of the October 1 launch of the scheme for businesses with more than Rs 500 crore turnover. The scheme will introduce a standard invoicing standard for all companies.

“Businesses will continue to issue invoices as they are doing now. Necessary changes on account of e-invoicing requirement to enable reporting of invoices to Invoice Registration Portals (IRP) and obtain Invoice Reference Number (IRN), will be made by ERP or accounting and billing software providers in their respective software,” the IT backbone provider of GST said.

Businesses will need to get the updated version having this facility, GTSN clarified. A dedicated mobile app to scan and verify validity of e-invoice quick response (QR) code will be provided by the government.

“These FAQs not only clarify the key doubts of the industry on the subject matter, but also throw light on the modus-operandi of e-invoicing system,” said Abhishek Jain, tax partner .

E-invoices will be needed for business to business transactions, for exports, credit and debit notes. Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens will also need e-invoicing.

E-invoicing will enable auto-reporting of invoices into GST return, auto-generation of e-way bills, facilitate standardisation and inter-operability leading to reduction of disputes among transacting parties, improve payment cycles, reduction of processing costs and thereby greatly improving overall business efficiency.