New Delhi: There is going to be a big change in the e-invoicing system of GST. From January 1 next year, this system will also be necessary for all those businesses whose turnover for B2B business transactions is above 100 crores. Finance Secretary Ajay Bhushan Pandey said that the e-invoicing system would ultimately benefit small businesses and Micro, Small and Medium Enterprises (MSMEs) running from the current GST return filing system.
Under Goods and Services Tax (GST) Act, e-invoicing has been made mandatory for companies with more than 500 crore turnover for B2B transactions from 1 October. Revenue Secretary and Finance Secretary Ajay Bhushan Pandey said that e-invoices will be necessary for turnover of more than 100 crores from 1 January 2021 and e-invoices on B2B transactions will be necessary for all taxpayers from 1 April 2021. This system will replace the physical invoice and will soon replace the existing e-way bill system and taxpayer will not have to generate e-way bill separately.
The invoice reference number (IRN) generation has increased by 163% within 7 days of e-invoice system implementation and by October 7
It has touched the figure of 13.69 lakhs. Under this system, taxpayers have to generate an invoice on their internal system (ERP or accounting or any billing software) and then send it online to the NYS Registration Portal (IRP). The IRP validates the information provided in the invoice and digitally signs a specific invoice reference number (IRN) with the QR code and sends the invoice back to the taxpayer.
According to the figures available according to GSTN and NIC, more than 69.5 lakh IRNs have been generated by 71 thousand users within 7 days of implementing e-invoice system. On the very day of implementing this system, 8.4 lakh IRN 8453 users generated and on October 7, 13.69 lakh IRN 14100 users generated.
