E-invoicing will be mandatory for taxpayers who had a turnover of more than Rs. 50 crores in any financial year since the introduction of GST.
What benefits does the government see in implementing E-invoicing and whether the entire process can be simplified?
As of now look at the outward supply flow:
- Prepare Invoice
- Generate E-Invoice reference number
- Generate E-way bill
For one outward supply, taxpayer has to deal with 3 documents. By introducing multiple documents, what government is trying to achieve?
After Invoice is prepared on plain paper, government does not have surety that GSTR-1 will include that invoice. When E-invoice is generated, data is captured by GSTR-1. Then, if lower sale is reported in that month as compared to total of e-invoices, then department will be easily able to send Notice to defaulter. Reason for Ewaybill is that even if PaperInvoice+Einvoice is generated, it is possible that someone tries to remove same quantity of goods multiple times under the cover of that single bunch. By capturing time and place and vehicle in ewaybill, no one will be able to send multiple shipments plugging tax leakage.
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