GST e-invoice: Here’s its benefits and Industry reaction

Finance secretary Bhushan Pandey, recently announced that e-invoice shall apply for B2B transactions for all the companies registered under GST from 1st April 2021.

E-invoicing is mandatory from 1st October 2020 to all businesses whose aggregate turnover has exceeded the Rs.500 crore limit in any of the previous financial years from 2017-18 to 2019-20.

What is e-invoicing under GST?

Electronic invoicing (e-Invoicing) is the exchange of the invoice document between a supplier and a buyer in an integrated electronic format. It is a system in which all B2B invoices are electronically uploaded and authenticated by the designated portal.

In a conversation with DQ Channels, Yogesh Godbole, Director, Ace Brain Systems & Software Pvt. Ltd. has explained its benefits for the buyers and sellers.

What are the benefits of GST e-invoice?

• It will prevent errors and reduce costs.
• Seller and buyers will be aware of billing and its shipment details.
• ERP can track the same which will reduce the errors of discussed rates which will shorten the payment cycle.
• Pre-authentication will be possible.
• Doubts on input tax credit will go.
• Organized businesses will have immense value.
• It will make it easy for the Government to track the shipment on the street as Govt. will be aware of the vehicle number, its contents and its value.

What Industry association says about e-invoice?

“This is certainly an exercise to stop evasion. In Interiors, people may not have enough skilled staff and for every such activity workload increases. But for the entity that is doing business more than 50Cr. annually must gear up for such compliance, as this will give them a level playing field against unorganised and/or unwilling to comply for the reasons best known to them. The only thing remains to see is, how effectively it is implemented by GSTN” said, Viren Bavishi, Gen. Secretary, TAIT.