According to the latest information and update, the Central Board of Indirect Taxes and Customs (CBIC) and government notify a new GST e-invoice scheme.
The scheme aims at businesses with turnover of Rs 500 crore and above, readily having to generate all invoices on a centralised government portal.
The real question is when? This will take effect immediately from October 1, 2020 - based on the official report.
Moreover, the reason to bring such changes and present the new scheme is curbing GST evasion through issue of fake invoices. Deeper, the CBIC Principal Commissioner (GST) Yogendra Garg said that this will bring improvement and simplicity in the GST filing process.
Here in this blog, you will learn about GST E-invoice, it’s new features and benefits for business, and significant changes highlighted in the new system.
What is GST E-Invoicing?
GST e-invoicing is an electronic way of filing GST invoicing mainly used by and for B2B business and B2B invoices, respectively. When business successfully completes the e-invoicing procedure, then, all invoicing information will be transferred from standing portal to the central government portal (according to the changes made in the new scheme).
Features of GST E-Invoicing System
Some major crucial features present in E-invoicing under GST is IRN, Digital signatures etc, under the new e-invoicing system.
Unique Invoice Reference Number (IRN): It refers to a unique invoice reference number that is generated by the system whenever a taxpayer uploads their software generated invoice to the Invoice Registration Portal.
Digital Signing by e-Invoice Registration Portal: To make the whole process secure, authenticated, and strong, taxpayers have the option to digitally sign it with the private key of the IRP.
QR Code: This feature is a sign of relief for central portal work and offline App. The IRP generates longitude QR Code containing the unique IRN (hash) along with some important parameters of invoice and digital signature. The QR code will consist of the following e-invoice parameters like - GSTIN of supplier, GSTIN of Recipient, Invoice number as given by Supplier, Date of generation of invoice, Invoice value (taxable value and gross tax), and more.
Benefits of Filing GST Return With New GST E-Invoicing Scheme
The prime benefits of introducing, bringing, and updating the new features in GST E-invoice will eliminate the submission of fake invoices. Also, the new changes made in the system will bring the efficiency and would make the returns filing process simpler for businesses.
Previously, the business with turnover of Rs 100 crore had to file GST e-invoice, but, considering the new scheme, the milestone extended to Rs 500 crore. Thus, provide significant relief of filing GST invoice at minimum, for large scale businesses.
Changes of Highlights: New GST E-invoicing System vs Earlier
For a quick snapshot, here are considerable changes highlights (underbelow) based on the official statements.
Businesses with turnover of Rs 500 crore and above will generate all invoices on a centralised government portal starting October 1.
This update will add more reliability, efficiency, and security as compared to earlier systems.
The taxpayer will experience the return filing process faster and simpler.
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