CBIC notified e-invoicing for turnover exceeds Rs.500 crore from 1st October’2020.
CBIC notified e-invoicing for turnover exceeds Rs.500 crore from 1st October’2020.
The Central Board of Indirect Taxes and Customs (CBIC) has notified e-invoicing for businesses with turnover above Rs 500 crore, increasing the threshold for mandatory issuing of electronic invoices from the earlier limit of Rs 100 crore turnover, providing relief to small scale companies. See Notification No.61/2020-Central Tax.
The government intends to implement e-invoicing or electronic submission of sales invoice to 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. The practice followed in many international markets will also prevent tax evasion while reducing chances of audits or surveys.
Exempt from e-Invoicing :
1.Insurance and banking companies,
2. Financial institutions,
3. Non-banking financial institutions,
4. Goods transportation agencies and passenger transportation services will be exempted from e-invoicing and dynamic QR codes.
5. SEZ Unit.
CBIC had also mandated implementation of dynamic quick response (QR) codes on e-invoices from October 1, however, this has not been made mandatory in the July 29 notification. A QR Code contains details of an invoice such as GST identification numbers of suppliers, receiver and invoice numbers, which can be checked instantaneously without internet access.
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