E-Invoices mandatory for B2B Transactions from Sept to check GST evasion

E-Invoices mandatory for B2B Transactions from September to check GST evasion:

A move aimed at curbing the menace of fake invoices, Govt is likely to implement E-Invoices for Business to business invoices. All invoices for business-to-business sales by entities beyond a specified turnover threshold will be generated on a centralised government portal by September, officials said.

The revenue secretary is monitoring the progress of implementation of electronic or e-invoice project for which an officers’ committee has already been set up, they added.

‘E-invoice for B2B transactions will be rolled out in next three-four months in a phased manner. The entire invoice would have to be generated on a government portal, “an official told PTI.

The move aims at curbing tax evasion through fake invoices. Recently, a large number of GST evasion cases were reported where the evaders used fake invoice. Besides, it would make the returns filing process simpler for businesses as invoice data would already be captured by a centralized  portal.

Revenue department would be looking at extending it to business-to-consumer (B2C) sales, especially in sectors where the probability of tax evasion is high, depending on the success of the project in the B2B segment.

Businesses beyond the specified turnover threshold, to be decided later. The threshold can also be fixed on the basis of the value of the invoice.

Once rolled out, the e-invoice project will allow businesses to simultaneously generate e-way bill, if needed,” the official added. E-way bill is required for moving goods exceeding Rs 50,000

The e-invoice generation method will be similar to the one being followed for e-way bill on the ‘ewaybill.nic.in’ portal or payment of GST on the GSTN portal.

The proposed ‘e-invoice’ is part of the exercise to check GST evasion. With almost two years into GST implementation, the government is now focussing on anti-evasion measures to shore up revenue and increase compliance.There are over 1.21 crore registered businesses under the GST, of which 20 lakh are under the composition scheme.

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