B2B invoices will have to be generated on centralised government portal by September to check GST evasion

The revenue secretary is monitoring the progress of implementation of electronic or e-invoice project for which an officers' committee has already been set up

Press Trust of India May 06, 2019 11:04:42 IST
B2B invoices will have to be generated on centralised government portal by September to check GST evasion
  • The move will help in curbing Goods and Services Tax (GST) evasion through the issue of fake invoices

  • Depending on the success of the project in the B2B segment, the revenue department would be looking at extending it to B2C sales

  • Businesses beyond the specified turnover threshold would be provided software which will be linked to the GST Network (GSTN)

New Delhi: All invoices for business-to-business sales by entities beyond a specified turnover threshold will be generated on a centralised government portal by September, a move aimed at curbing the menace of fake invoices and evasion of GST, officials said.

The revenue secretary is monitoring the progress of implementation of electronic or e-invoice project for which an officers' committee has already been set up, they added.

"E-invoice for B2B transactions will be rolled out in next three-four months in a phased manner. The entire invoice would have to be generated on a government portal," an official told PTI.

The move will help in curbing Goods and Services Tax (GST) evasion through the issue of fake invoices. Besides, it would make the returns filing process simpler for businesses as invoice data would already be captured by a centralised portal.

B2B invoices will have to be generated on centralised government portal by September to check GST evasion

Representational image. News18.

"Once rolled out, the e-invoice project will allow businesses to simultaneously generate e-way bill, if needed," the official added. E-way bill is required for moving goods exceeding Rs 50,000.

Depending on the success of the project in the B2B segment, the revenue department would be looking at extending it to business-to-consumer (B2C) sales, especially in sectors where the probability of tax evasion is high.

Businesses beyond the specified turnover threshold, to be decided later, would be provided software which will be linked to the GST Network (GSTN) or a government portal for generating e-invoice. The threshold can also be fixed on the basis of the value of the invoice.

The e-invoice generation method will be similar to the one being followed for the e-way bill on the 'ewaybill.nic.in' portal or payment of GST on the GSTN portal.

A 13-member officers' committee, comprising central and state tax officials as well as the GST Network Chief Executive, has been set up to look into the feasibility of introducing e-invoice system to streamline the generation of invoices and easing the compliance burden. The committee will finalise its interim report this month.

The proposed 'e-invoice' is part of the exercise to check GST evasion. With almost two years into GST implementation, the government is now focussing on anti-evasion measures to shore up revenue and increase compliance.

There are over 1.21 crore registered businesses under the GST, of which 20 lakh are under the composition scheme.

Updated Date:

also read

GST Council may consider modification in monthly tax payment form for better input tax credit reporting
Business

GST Council may consider modification in monthly tax payment form for better input tax credit reporting

A meeting of the Goods and Services Tax (GST) Council, the highest decision making body in the GST matter, is likely to be held next month

Supreme Court says Centre, states not bound to recommendations of GST council
Business

Supreme Court says Centre, states not bound to recommendations of GST council

An apex court bench led by Justice DY Chandrachud held that the Parliament intended that the 'recommendations of the GST Council will have persuasive value as India is cooperative federalism'

How apex court gives ‘supreme’ relief to businesses by ending double taxation on ocean freight
Business

How apex court gives ‘supreme’ relief to businesses by ending double taxation on ocean freight

The SC judgement should act as a catalyst for the GST Council to review all legacy circulars and rules and remove all anomalies in law, making compliance simple and taxpayer-friendly, along with complying with the basic principle of law and canons of taxation