Will GST e-invoicing be Mandatory for Large Businesses from April 2020?

Since its implementation on 1st July 2017, GST has successfully registered 1.21 crore taxpayers. 

As the GST registration process, payment and other compliances have been digitized since inception, more and more individuals find it easier to register with the Goods and Services Tax Council. 

Furthermore, after a slight dip in payments under the indirect tax regime, GST collection has jumped back to its mark of Rs.1 lakh crore in November. Tax collections under the system were thus recorded at Rs.1.03 lakh crore for the month, a 6% increase from the previous month.

A quick view of GST highlights

  • 37.11 crore – Total GST returns filed up to 9th December 2019.
  • Rs.20.36 lakh crore – GST payments through the online portal singularly.
  • 9 lakh – Highest transactions recorded for one day towards GST payments.
  • 740 crore – Total invoices uploaded up to 9th December 2019.

To improve the monitoring of GST invoicing for medium and large companies and plug in the loopholes of tax evasion, the GST council has further introduced a new reporting method. Mandatory e-invoicing for large companies with an annual turnover of Rs.100 crore will be effective from 1st April 2020. Thus, large companies must opt for GST registration online and comply with e-invoicing.

The mandate for e-invoicing – An overview

The revised plan for e-invoicing has been mandated for large and mid-sized companies by the GST Council. From January next year, the requirement will be rolled out voluntarily.

However, by April 2020, it will be mandated for B2B and B2C businesses to basis their annual turnover exceeding Rs.100 crore. To be submitted to the IRP or Invoice Registration Portal, each invoice will carry a unique IRN and a QR code.

Following this, it will be received by the GST Network within 24 hours, and the taxpayer will receive the invoice approved by this same. All taxpayers must, therefore, have their GST registration completed. They must, however, know how to register for GST online to complete this process.

The rollout will be phased and implemented with the following course of action – 

  1. B2B businesses with an annual turnover of Rs.500 crore or more can voluntarily opt for e-invoicing from January 2020.
  2. B2B businesses with Rs.100+ crore of annual turnover to opt for e-invoicing on trial basis and voluntarily.
  3. All B2B and B2C businesses with an annual turnover of Rs.100 crore and more to mandatorily comply with e-invoicing from April 2020.

GST payment is mandatory for businesses with an annual turnover of Rs.40 lakh only for those dealing in goods. In the case of businesses providing services, mandatory payment rule applies if they have an annual turnover of Rs.20 lakh.

The limit is Rs.10 lakh in the case of specific states. Timely payment of GST brings numerous benefits. For instance, it enables you to avail of additional financing as business loans with ease.

Further, lenders like Bajaj Finserv bring these advances with attractive features like Flexi Loan facility. Such features, along with competitive interest rates, make repayment affordable.

Providing the GST certificate containing the registration number is a mandate for businesses when applying for external finance.   

How to apply for GST number?

You can avail of the GSTIN by opting for GST registration online. All you need to do is open the registration page on GST’s official website and opt for new registration under ‘Services’. 

Next, provide all the necessary details and verify your mobile number with OTP. With the Temporary Registration Number generated, login to the GST portal and verify with a new OTP generated. 

Lastly, provide your company’s details and account number, and register your digital signature to complete the registration.

With this process on GST application, you can succeed in your business. Now, you can proceed with e-invoicing for GST compliance as mandated. You can use a GST calculator for manufacturers to estimate your GST liability and generate invoices accordingly.

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