On Thursday, the Central Board of Indirect Taxes and Customs (CBIC) notified the e-invoicing system for businesses with turnover above Rs 500 crore. This will come as a relief to small businesses as earlier the turnover threshold for mandatory issuing of electronic was Rs 100 crore.
In its notification, the indirect tax department said that units in Special Economic Zones (SEZs) are not required to follow e-invoicing rules.
E-invoicing for business-to-business transactions will be implemented from 1 October 2020. The notification issued also includes formats or schemas for the execution of e-invoicing by trade.
The government is likely to include businesses with sales of Rs 100 crore and more once the e-invoicing system has been stabilised.
The electronic submission of sales invoice is being implemented o bring more transparency in sales reporting, automate data entry work, reduce errors and mismatches, capture sales related details in the system instantaneously and improve compliance.
It will also prevent tax evasion and reduce chances of audits or surveys.