Online Invoicing: Another Move To Check Gst Evasion
May 27, 2019 By Admin
In order to keep a check on GST evasion, the Government of India has further brought a move, which would restrict businesses to generate paper bill/invoice, or invoices generated through their accounting software. In the first phase, starting this September, it would restrict generation of bills for business-to-business (B2B) transactions.
The move is aimed at curbing the menace of fake invoices and e-way bills. The businesses would be required to generate invoices at the government portal. The bill would be called E-invoice, which would be generated from online government portal along with e-way bills.
Depending on the success of the project in the B2B segment, the revenue department would be looking at extending it to business-to-consumer (B2C) segment, especially in sectors where tax evasion is high.
Businesses beyond a specified turnover would be provided software, which will be linked to the GST Network (GSTN), or a government portal for generating e-invoice. The threshold can also be fixed on the basis of the value of invoice.
The e-invoice generation method will be similar to the one being followed for e-way bill or payment of GST on the GSTN portal. A committee has been set up to look into the feasibility of rolling the e-invoice system to streamline generation of invoices and easing compliance burden. The committee will finalize its report in a month or two.
Published by : RAKESH KANWAR & CO.
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