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India’s GST e-invoicing system registered nearly 40 cr invoices in first 6 month

India’s GST e-invoicing system registered nearly 40 cr invoices in first 6 month

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The Indian government’s GST e-invoice system has registered over 39.81 crore e-invoices over its first six months, the government announced today. Over 37.42 lakh of these e-invoices were generated on March 31 alone, which is the highest for a single day in the last six months. Over 47 lakh recipients were involved in these transactions.

The Indian government’s e-invoice system was launched in October last year and required taxpayers whose annual aggregate turnover came in at over Rs. 500 crore to use the system. The government added businesses with turnovers over Rs. 100 crore to this on January 1, 2021. Businesses with turnover of over Rs. 50 crore will also be required to use the e-invoicing system from April 1 onwards, and it’s expected to be extended to all businesses in India eventually.

The e-invoicing system is meant to add transparency to companies’ sales reporting processes and reduce errors. A digital system is also expected to make it much more difficult for companies to file fake invoices. On the other hand, experts have said that the system may pose troubles for small and medium enterprises (SMEs), which don’t always have big technology investments. According to the revised definition of MSMEs, announced last year, the vast majority of small businesses in India fall under this ,

The government’s system requires companies to raise invoices through their own enterprise resource planning (ERP) systems and submit them to the government’s Invoice Registration Portal (IRP). The government said the National Informatics Centre (NIC) has taken “pro-active measures” to educate taxpayers about common errors in reporting their invoice. It also sends daily emails with details of these errors and telephone calls to taxpayers who are making the most errors. An invoice reference number (IRN) with a QR code will also be made available to those who submit their GST invoices.

Source: Live.Mint

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E-invoice
Small firms face a daunting task as e-invoicing kicks in from April 1

Small firms face a daunting task as e-invoicing kicks in from April 1

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Come April 1 and e-invoicing will be mandatory for business-to-business (B2B) transactions for taxpayers having a turnover of over Rs 50 crore from April 1, 2021.

At present, issuing electronic invoices is mandatory for businesses with a turnover of Rs 100 crore and more.

E-invoicing replaces the physical invoice and will soon replace the existing eway bill system, and taxpayers will not have to generate separate e-way bills.

The challenges

However, small firms may find it challenging to comply with the new norms.

Small businesses in small towns may face some difficulties with technology-led business processes.
A business needs to validate mandatory invoice information before uploading it to e-invoice systems to avoid rejections, otherwise, they may have to spend more time.

Firms will need to be vigilant while generating e-invoice as there are restrictions with the cancellation of the invoice, which must be carried out within the same day of the transaction.

How does e-invoicing work?

E-invoicing replaces the physical invoice and will soon replace the existing e-way bill system, and taxpayers will not have to generate separate e-way bills.

Under e-invoicing, taxpayers have to generate invoices on their internal systems (ERP/accounting/billing software) and then report them online to the Invoice Registration Portal (IRP).

The IRP will validate the information provided in the invoices and return the digitally signed e-invoices with a unique ‘Invoice Reference Number (IRN)’ along with a QR Code to the taxpayer.

Gaming the system

Small businesses use informal sales invoices to under-report turnover, which will be curbed by the move.

E-invoicing makes it difficult to show lower retail sales as the wholesale purchases are already reported to the government. The tax authorities can seek an explanation for the mismatch in wholesale buys and the final sales. If the purchases are higher and sales are lower, the taxman can ask the business to show inventory.

Benefits

The government expects e-invoicing to bring other major advantages, such as improving the payment cycle for industry and giving a boost to invoice-based lending to MSMEs.

Last month, the board had exempted non-banking financial companies, insurance companies, banks and financial institutions, and exports from

using dynamic quick response or QR codes on e-invoices issued to consumers. Exports have been exempted from the QR code requirement since such shipments are treated as business-to-business supplies. The board had notified the mandatory use of dynamic QR codes on such invoices issued by companies with an aggregate turnover of more than Rs 500 crore in March last year.

Source: Economic-Times.

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GST e-invoicing mandatory for turnover of Rs 50 cr and above from April 1

GST e-invoicing mandatory for turnover of Rs 50 cr and above from April 1

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E-invoicing under the goods and services tax (GST) regime will become mandatory for entities with a turnover of Rs 50 crore and more from April 1 for business to business transactions, the government said in a notification on Monday. This will be the third phase of e-invoicing roll out, which was rolled out for entities with Rs 500 crore and more turnover from October 1 last year and later extended to entities with Rs 100 crore and above from January 1 this year. The government had earlier planned to extend e-invoicing to all entities from April 1, 2021, but has refrained, taking care of interest of small entities.

The system is aimed at bringing in more transparency in sales reporting, minimising errors and mismatches, automating data entry work, and improving compliance. It will help prevent tax evasion once it is made mandatory for small and medium firms in phases.

Rajat Mohan, partner, Associates said, “Government had earlier planned to roll out the electronic invoicing system for all business-to-business (B2B) transactions from April 1, whereas government has now zeroed on a threshold of Rs 50 crores. Keeping MSME organisations with turnover of upto Rs 50 crores out of the E-invoicing net would help them thrive and grow without any change in business processes.

Under e-invoicing, companies have to generate an invoice registration number (IRN) from a government portal and it has to be shown to the authorities while moving goods. Sectors like transportation, insurance and banking companies, other financial institutions, non-banking financial companies, goods transportation agencies, and passenger transportation services are exempt from e-invoicing. Besides, units in special economic zones too are exempt from this.

Source: Business-Standard

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E-invoice
GST: NIC issues list of GSTINs on whom E-Invoicing is Mandatory

GST: NIC issues list of GSTINs on whom E-Invoicing is Mandatory

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The National Informatics Centre (NIC) has issued a list of GSTINs dated January 27, 2021, for whom e-invoicing shall be mandatory.

There are 73308 GSTNs who are enlisted by the NIC for whom it is mandatory for the taxpayer to upload the invoice details and register supply transaction on the Government Invoice Registration Portal.

‘E-invoicing’ or ‘electronic invoicing’ is a system where the taxpayer will upload his invoice details and register his supply transaction on the Government Invoice Registration Portal (IRP) and get the Invoice Reference Number (IRN) generated by the IRP system.

The taxpayer will first prepare and generate his invoice using his ERP/accounting system or manually and then upload these invoice details to IRP and get the unique reference number, known as IRN.

It is noteworthy that the e-invoice does not mean preparation or generation of taxpayer’s invoice on the government portal. It is only intimating the government portal that invoice has been issued to the buyer, by registering that invoice on the government portal.

Source: TaxScan.

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e-invoice
GSTN issues Advisory on Auto-population of E-Invoice details into GSTR-1

GSTN issues Advisory on Auto-population of E-Invoice details into GSTR-1

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The Goods and Services Tax Network (GSTN) has issued an advisory on Auto-population of E-Invoice details into GSTR-1.

From 1-10-2020, certain notified taxpayers have been issuing invoices after obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred as ‘e-invoices’).

From 1-1-2021, the taxpayers with aggregate turnover above Rs. 100 Cr. had also started reporting invoices to IRP.

Details from the reported e-invoices are being auto-populated in respective tables of GSTR-1. Update on the same was last published on 30/12/2020.

A detailed advisory regarding methodology of auto-population of e-invoice details into GSTR-1 is already published on GSTR-1 dashboard.

It is observed that, while pulling the e-invoice data for the month of December, 2020 into GSTR-1, details of some invoices were not populated into GSTR-1. This inadvertent gap is being rectified on priority and details of those invoices will be pushed to GSTR-1 shortly.

However, taxpayers should not wait for the same and advised to proceed with preparation and filing of GSTR-1 for the month of December, 2020 (before the due date), based on actual data as per their records.

As already noted in the afore-mentioned advisory, the taxpayers may modify/delete only those documents where the details auto-populated from e-invoices are not as per the actual documents issued.

Otherwise, the details of e-invoices auto-populated in GSTR-1 can be edited/deleted by the taxpayer. However, in such cases, the ‘Source’, ‘IRN’ and ‘IRN date’ fields will be reset to blank in respective tables of GSTR-1 and accordingly won’t get reflected in GSTR-2A/2B/4A/6A also. Such edited documents will be treated as if they were not auto-populated but uploaded separately by taxpayer.

Other than the details auto-populated from e-invoices, taxpayers are required to add details of any other supplies made, in respective tables of GSTR-1.

An additional facility of consolidated excel download of all documents auto-populated from e-invoices is available in GSTR-1 dashboard. This file includes details of cancelled documents also.

However, any subsequent modifications made to the auto-populated documents (in GSTR-1 tables) would not be reflected in this excel file.

Source: TaxScan.

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E-invoice
GST E-Invoice System completed 3 months; Enabled more than 37000 Taxpayers to Generate more than 1680 Lakh IRNs

GST E-Invoice System completed 3 months; Enabled more than 37000 Taxpayers to Generate more than 1680 Lakh IRNs

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GST e-invoice system, the game-changer in the GST system, has completed a journey of three months and has facilitated the smooth transition of the taxpayers to the new platform. It has enabled more than 37000 taxpayers to generate more than 1680 Lakh Invoice Reference Numbers (IRNs), during the last three months from the NIC developed e-Invoice system.

Starting with 495 lakhs during October 2020, the generation of e-Invoice has increased to 589 lakhs in November 2020 and 603 Lakhs in December 2020. Interestingly the e-way bill generation from the NIC (National Informatics Centre) developed e-way bill system is also highest from September to December 2020 compared to the same months of previous years.

The response of the system is good and the generation of IRNs is hassle-free during this period. However, there have been common errors such as repeated requests on the same document number, simultaneous requests on the same document number, requests with validation or calculation errors, etc.

Proactive measures are taken by the NIC Help desk, including communication with taxpayers about the issues through mails and telephonic calls and suggestion of corrective measures, has facilitated in bringing the errors down. NIC has also started sending daily updates to the generators of IRN about the number and value of the IRN generated by him/her.

The Government has reduced the aggregate turnover cut off to Rs. 100 Crores per annum for the generation of IRN by the taxpayers from 1st January 2021. NIC has already enabled the API and offline tool based sites for these taxpayers. NIC is also geared up with adequate infrastructure to handle the generation of e-invoices from these taxpayers from 1st January 2021. NIC portal facilitates the big taxpayers, whose turnover is more than Rs. 500 Crores, to enable direct API access to their suppliers and clients from their systems.

Keeping the requirements of small taxpayers in view, NIC has developed the offline Excel-based IRN preparation and printing tool, called a NIC-GePP tool for the small taxpayers. This application will allow the taxpayers to enter the invoice details, prepare the file to upload on the NIC IRN portal, download the IRN with QR code, and print the e-invoice with QR code.

Source: TaxScan.

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E-invoicing under GST pick up speed, posts 17% growth in November

E-invoicing under GST pick up speed, posts 17% growth in November

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E-invoicing under goods and services tax (GST), overcoming early hiccups, picked up pace right in the second month of its roll-out, with bill generation posting 17 per cent growth in November over the previous month. This paves the way for the second phase of e-invoicing, which is to make it mandatory for entities with a turnover of Rs 100 crore and more from January 1 and the rest from April 1 for business-to-business transactions.

The e-invoicing system is now mandatory for entities with a turnover of Rs 500 crore and more. About 56 million invoice reference numbers (IRNs), or e-invoices, were generated in November against 48 million in October, reflecting economic demand revival.

Days ahead of Diwali, 3.26 million IRNs were generated on November 6, the highest since the rollout on October 1.

Daily invoice generation has now improved to 2.5-2.7 million per day compared to an average of 1.5 million a day in October.

“There are almost no complaints. This is because these are large firms with sound tech systems. We are prepared to roll out the next phase from January 1,” said a government official. The system is aimed at bringing in more transparency in sales reporting, minimising errors and mismatches, automating data entry work, and improving compliance. It will help prevent tax evasion once it is made mandatory for small and medium firms.

With close to 20,000 GSTINs (GST identification numbers) in the Rs 500 crore and above category already there, another 90,000 GSTINs are estimated get added on January 1. E-invoicing testing for these entities started on November 15.

The e-invoice data started auto-populating the GSTR 1 or the sales return form from Friday. “The e-invoicing system will do away with the need for separate e-way bills,” said the official.

Abhishek Jain, tax partner, said firms with a turnover of Rs 500 crore and more, with small initial hiccups, smoothly adopted mandate, and this was evident from the increased number of IRN generation. While in the medium run, this mechanism will replace the existing e-way bill system, the Centre is hoping to dispense with filing GST returns for MSMEs.

Source: Business-Standard.

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GST e-invoice system: 495 lakh e-invoices generated on NIC portal

GST e-invoice system: 495 lakh e-invoices generated on NIC portal

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Ministry of Electronics & IT has said that over 495 lakh GST e-invoices were generated on the NIC portal by 27,400 tax payers within the first month of introduction.

“Path breaking e-invoice initiative which completed one month on the 31st October, is poised to revolutionize the way businesses interact with each other. According to NIC, within the first month of introduction itself, more than 495 Lakh e-invoices were generated on the NIC portal by 27,400 tax payers. The e-invoice system, the game changer in the GST system, was launched on 1st October, 2020 for the businesses with aggregate turnover of more than Rs. 500 Crores in the financial year,” an official release said.

It will be yet another milestone in India’s journey in enhancing ease of doing business. The data captured by the Invoice Registration Portal will flow seamlessly to GSTR1 return of the tax payer in GST Common Portal (gst.gov.in), thus reducing the compliance burden, the release said.

Starting with 8.4 Lakh e-invoices on 1st October, 2020, the usage has gradually picked up and 31st October, 2020 saw generation of as many as 35 lakh e-invoices in a single day. This coupled with generation of 641 Lakh e-way bills during the month of October, 2020, (by far the highest in a month during two and half years of journey of e-way bill system), establishes the robustness of the system. As per the feedback received from the tax payers, the response of the system is good and generation of IRNs is hassle-free. Proactive communication by NIC Help desk with tax payers has helped them in finetuning their systems to reduce the errors.

Currently, there are three modes of generations of IRN in NIC system. First is the direct API interface of ERP system of tax payer with NIC system. Second is the API interface of ERP system of the tax payer through GSP with NIC system. Third is using the offline tool for bulk uploading of invoices and generating IRNs. Around 15% of the tax payers are using the offline tool for the IRN generations and 85% are integrating through API.

The Government is planning to reduce the aggregate turnover cut off to Rs 100 Crores for generation of IRN by the tax payers in coming days. NIC has already enabled the API and offline tool based trial sites for these tax payers and geared up with the required infrastructure to handle the generation of e-invoices from these tax payers.

Keeping requirements of small tax payers in view, who need to prepare 5-10 B2B invoices in a day, NIC is also developing an offline Excel based IRN preparation and IRN printing tool which will allow them to enter the invoice details, prepare the file to upload on NIC IRN portal, download the IRN with QR code and print the e-invoice with QR code.

Presently, the generation of IRN using API interface is allowed for businesses with aggregate turnover more than Rs 500 crores, GSPs and shortlisted ERPs. Now, direct access will be extended to the tax payers using E-way Bill API interface. Generally, the big businesses will enable their suppliers and clients to use their ERP/SAP systems for generation of invoices. Therefore, it has been decided to facilitate them to enable their suppliers and clients to use their integration channels.

Source: Zee-News

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