October 25, 2020

TAX E-INVOICE SOLUTION FOR BUSINESS 2020

Shyamasri Bandyopadhyay:Recently CBIC issued notification enhancing threshold for preparing E-Invoice to Rs 500 Crores.

Earlier the said limit for preparing E-Invoice was Rs 100 Crores.

The provisions shall come into effect from 1st October, 2020.

‘E-invoicing’ or ‘electronic invoicing’ is a system where in the tax payer 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.

Here the tax payer 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 clarified again that the e-invoice does not mean preparation or generation of tax payer’s invoice on 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.

As per Notification– Central Tax dated 30th July, 2020 Threshold Turnover for preparing E-Invoice is Rs 500 Crores.

The turnover for the purpose of E-Invoicing is to be computed at PAN Level (for all GSTINs combined) for the Financial Year 2019-20.

Threshold Turnover for preparing E-Invoice is Rs 500 Crores.

The taxpayers need to report the following documents to the e-invoice system

Invoice by Supplier/Credit Note by Supplier/Debit Note by Supplier.

The tax payer has to upload the complete invoice details, prepared manually or through internal ERP/accounting system, as per the format, and after due validations of the data, the system returns the IRN with the signed invoice and QR code back to the tax payer.

The IRN, ACK No, Date and QR code has to be printed by the tax payer on the invoice being issued to the buyer.

It may be noted that the IRN can be generated by the supplier only and not by buyer or transporter.

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