For business to companies (B2C) dealings, the government has made it mandatory for enterprises with an annual turnover of at least Rs. 100 crore to follow e-invoicing starting January 2021. The notification has been released for the same by the centre.
In the current regime, e-invoicing is mandatory for companies with an annual turnover of at least Rs. 500 crore. The mandate was to be followed from October but the centre has withheld any penalty implication on defaulting companies' for at least a month.
As per the system, companies need to raise e-invoices via an unique invoice reference portal and generate the IRN or invoice reference number. And failure to do so will prevent such companies from moving goods for business to business (B2B) dealings. From April 2021, the government intends to launch e-invoicing for all companies.
" Aligned to the recent communications by various government officials, e-invoicing has now been notified for companies with a turnover of Rs 100 crore and above companies as well. With only 50 more days to go, these mid-size companies would need to soon gear up their processes and IT systems to enable compliance with this new invoicing regulation", Abhishek Jain, tax partner at EY, said.