New Delhi: the finance ministry has widened the requirement of e – invoicing, effective from 1st April, as part of a drive to the transaction of economy and tighten tax compliance.
The official order issues on monday, all transaction of business- to business more than 50 crore barring select services will need e – invoicing starting from April month.uploading the key transaction details of e- invoicing entails to a government portal to generate a reference number on a real – time basis.
Collecting data on October 2020, the sales of E – invoicing was made compulsory for business with RS 500 crores. Initially the government thought of extending the compliance to all businesses from April month but has now opted for a slow implementation. State The State Govt will too inform the change.
The National informatic center – it is a portal which generates the reference number, capture details of the buyer, seller, technical description of the item sold, sale value and the tax payable.it is help in greater oversight of economic activities in real time and improve the tax compliance.know another information helping i official trust final sales figure reported by by businesses in their income tax and goods and service tax(GST) returns and the additional businesses avoidable regulatory security.
The rules of invoices do not follow the e – invoices norms by business that is required to generate e – invoice will be invalid. searching some information in expert, they say that the small business have to quickly get their act together.
recently the cover data from 1st january 2021, The e – invoicing taxpayers paying the tax above 100 crore. expected the april 2021 in E – Invoicing has been made mandatory for businesses turnover above rs 50 crore, which will provide the businessman to be proactive and the intent of the govt to widen the net of digitalisation. As limited time is left, industry players in this segment will need to proactively map out the IT and process changes and start implementing the same,” said Abhishek Jain, tax Partner, EY.
It is reform of the 2017 gst tax, which is helpful for small tax payers.the authorities are now leveraging its full potential to widen and deepen tax base. The new [policy has helped the center and states to collect above Rs1 trillion in GST receipts for five months starting from October to reduce the stress of the economy.