Ever since the introduction of GST in the Indian taxation system, GST officials have been diligent to work out a mechanism to stop tax evasion in India. Over the years, there have been instances wherein tax fraudsters have been caught using fake invoices to evade taxes or claim additional ITC. And such occurrence was only possible in the absence of a proper mechanism to tackle such a situation on a nationwide level.
Introduction to E-Invoice
To avoid the further occurrence of such tax evasions, the government is now working on an E-invoice module. Under this mechanism, businesses with an annual turnover exceeding a “yet-to-be-decided” amount would be required to generate an electronic invoice either on a government portal or on the Goods and Services Tax (GST) portal.
The government has set up a committee, comprising central, state tax officials and GST Network Chief Executive to look into the feasibility of introducing the e-invoice system to streamline the generation of invoices and ease the compliance burden.
Furthermore, to ensure smoother assimilation of the E-invoice mechanism into GST, businesses would also be provided with the software, which will be linked to the GST portal for generating e-invoice. The threshold for the same can be fixed on the basis of the value of the invoice.
- Businesses will have to generate an electronic invoice either on a government portal or on the Goods and Services Tax (GST) portal.
- Businesses, with turnover above the given threshold, will initially get a unique number for every e-invoice generated.
- The unique number can be matched with the invoices reported in the sales return and taxes paid.
- The process of generating e-invoice would be similar to the one being followed for the e-way bill on ewaybill.nic.in or GST payments.
IRISGST- Logo Vyapari
IRISGST in association with Logo is launching the IRISGST-Logo Vyapari, the free GST Ready Accounting app. It is an easy-to-use accounting software that facilities recording and processing of your sales invoices, inventory and accounting transactions. From your invoices and purchase orders to inventory and receipts, this platform helps you manage your business processes and provide all error free accurate data for timely tax filing.
IRISGST-Logo Vyapari App & ERP come with 100% compliance on the GSTN. ALL inward and outward processes including purchase order, sales invoices, material dispatches and all financial transaction are performed under strict compliance to the GSTN. The System allows generation of the statutory tax filing reports as prescribed by GSTN. The system also helps generation of the recommended GSTR series of reports.
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