The central government comes up with a centralized e-invoicing scheme for business having turnover more than 500 crores. As per the recent scheme, it will be mandatory for all those businesses with a turnover of more than 500 crores to generate all their B2B invoices on a centralized government portal which will go live from 1st October.
Why this new move?
Till now, all the companies be it, small-cap, mid-cap or large-cap use their own mechanism for generating invoices. These invoices vary company to company and can be forged easily to manipulate the buyer or for doing any other forgery. To curb this the government in association with the Central Board of Indirect Taxes and Customs (CBIC) has come up with an initiative wherein it will be mandatory for business with turnover more than 500 crores to generate an e-invoice through a centralized governmental portal for all their B2B sales.
The talk about this system was first heard in town in November last year. Then the proposal was to make this system mandatory for businesses with turnover over 100 crores and the system was set to be implemented by 1st April itself. However, due to some technical fault, the system couldn’t arrive in time.
The single centralized e-invoicing system brings with it a lot of advantages. The return filing process will become much easier for the businesses as after the introduction of this centralized system the invoice data would be captured easily without any delay. The fake invoice generation for forgery will reduce and finally will be removed. GST department will have access to real-time data as the business transactions move through the real world. This will eventually lead to easing in the generation of high-level data analytics.
Categories: Economy & Banking Current Affairs