GST E-Invoice Update: NIC Issues List of Businesses to which E-Invoice is Mandatory
E-Invoicing has been implemented since October 2020 & it has been receiving a positive response from the taxpayers.
There have been certain revisions to the eligibility criteria of the businesses to be mandated to enroll for the e-Invoicing system, since the inception of this system.
In this article, we will be discussing a very recent update on the e-Invoice front regarding the list of the businesses released to be mandatorily registered under GST.
About the e-Invoice generation update
The National Informatics Centre (NIC) has issued a list on its e-Invoice portal on January 27th, 2021.
This list consists of the details of the businesses for which e-invoice generation is made mandatory. The list shows about 70,000+ businesses for which e-Invoicing is made mandatory.
It will now be mandatory for these listed businesses to upload their invoice details to the Invoice Registration Portal (IRP) either directly or through a third-party service provider (any e-Invoicing software).
You can find out this recently released list here.
What is e-Invoicing under GST?
The e-Invoicing system is a recent addition to the GST structure. Since the introduction of this system, it has been popular in a short time and is being considered as a positive step as per the taxpayers.
e-Invoice generation under GST is a simple activity in which the eligible businesses have to upload their transaction invoices on a dedicated Government portal called Invoice registration Portal (IRP).
IRP then authenticates these invoices & returns you an authenticated copy with a unique Invoice Reference Number (IRN) and a QR Code.
This newly generated copy with an IRN and a QR Code is called an e-Invoice.
Why is e-Invoice Generation Important?
Let me give you a simple analogy.
There are some bad fishes along with many other good fishes in the pond.
There are many instances when the acts of these few bad fishes will negatively impact the good fishes & their activities.
The same goes with the GST structure (pond) 7 the taxpayers (good/bad fishes).
- Prevent Tax frauds
- Prevent Tax Leakages
- Prevent Tax Evasion
These are some of the important malpractices that will be brought under the radar with e-Invoicing being implemented.
Currently, the businesses whose annual aggregate turnover exceeds 500 Crore are mandated to follow the e-Invoicing system.
But, according to a recent update, e-Invoice generation may be made mandatory for businesses falling under the umbrella of 50- 100 Crore.
We can predict this based on the recently enabled sandbox testing facility by the Government of India & GST Portal. This testing is made available for the e-Invoice generation of the businesses who fall under the bracket of 50-100 Crore of aggregate turnover.
How will my Business Benefit from e-Invoicing?
There are multiple perks taxpayers can enjoy whilst registered under E-Invoicing System
Here are some typical benefits, that e-Invoicing can provide you.
- Real-time reporting of transactions for authentication by the government portal.
- Helps in faster ITC claim.
- Will prevent blocking of the cash flow due to mismatches.
- This transaction data will be available for Compliance and generation of e-way Bills.
- Solves a major problem of mismatching of data by faster data reconciliation.
- Improves your business efficiency.
In this short article, we have introduced you to the recent update on e-Invoice regarding the list of the businesses for which e-Invoicing has been made mandatory.
We also explained some basic concepts & benefits of e-Invoicing.
Any common taxpayer trying to understand the e-Invoicing concept will surely benefit from this article.
To help you file e-Invoice in fully automated software & learn about Government-authorized GST Suvidha Providers, click here.
Until the next time…
About the Author– GSTHero– Making GST Simple! GSTHero is the best GST filing, e-Way Bill Generation & E Invoicing Software in India. GSTHero is a government authorized GST Suvidha Provider. Both Businesses and Tax Practitioners can file GSTR 1, GSTR 3B, GSTR 9 and GSTR 9C with all supporting reports. 1 Click Auto Reconciliation & report-matching feature helps you in claiming up to 100% ITC and finds your GST Defaulting Suppliers. GSTR2A vs GSTR-3B, GSTR-1 vs GSTR-3B, ‘GSTR-1, GSTR-2A & GSTR-3B’ annual report matching is also provided by GSTHero.
GSTHero ERP Plugins provide 1 Click e-Way Bill & E-Invoice, Generation, Operation & Printing from your own ERP like Tally, SAP, Marg, Busy, Microsoft Dynamics, Oracle & others itself with high data security.
Thanks for Reading Our Article on “GST E-Invoice Update: NIC Issues List of Businesses to which E-Invoice is Mandatory”
You May Also Like: GSTN Enables the Facility for Core Business Selection on GST Portal
Follow Us on Twitter for Regular Updates: Click Here to Visit Our Twitter Handle