The centre has finalized a timeline for the new e-invoicing system under GST and the limit of application for each defined category.
As per the new timeline, it has been decided by the centre that the businesses having a turnover of Rs 500 crore or higher would have to opt for e-invoicing from January 1, 2020 on voluntary and trail basis.
As per the official statement, businesses with turnover of Rs 100 crore or more would start e-invoicing on voluntary and trial basis starting from February 1, 2020. However, from April 1, 2020, the beginning of the net fiscal, e-invoicing will be compulsory for both these businesses categories. For businesses having turnover lower than Rs 100 crore, it would remain as a voluntary option and on trial basis from April 1, 2020.
“Having done full preparation for last 6 months to introduce E-invoicing system, the government has decided to start ‘E-invoicing’ in a phased manner for generating business to business (B2B) invoices on voluntary basis,” mentions the statement.
The e-invoicing system would enable generation of invoice as per the prescribed standard format so that invoice generated on one system can easily be read by another system and reporting of e-invoice to a central system becomes possible move.
“The adoption of these standards would not impact the users of invoice; however, all the accounting software would adopt the new e-invoice standard wherein they would re-align their data access and retrieval in the standard format,” said the statement.