GST Network issues FAQs on invoicing scheme ahead of Oct 1 launch
The GST Network issued clarifications through frequently asked questions on Monday, ahead of the October 1 launch of the scheme for businesses with more than Rs 500 crore turnover. The scheme will introduce a standard invoicing standard for all companies.
by Gulveen Aulakh
E-invoicing will not be applicable for business-to-consumer supplies or import bills of entries, while special economic zone units, banking companies, insurers, goods transport agencies and passenger transport companies will be exempt from issuing them.
The GST Network issued clarifications through frequently asked questions on Monday, ahead of the October 1 launch of the scheme for businesses with more than Rs 500 crore turnover. The scheme will introduce a standard invoicing standard for all companies.
"Businesses will continue to issue invoices as they are doing now. Necessary changes on account of e-invoicing requirement to enable reporting of invoices to Invoice Registration Portals (IRP) and obtain Invoice Reference Number (IRN), will be made by ERP or accounting and billing software providers in their respective software," the IT backbone provider of GST said.
Businesses will need to get the updated version having this facility, GTSN clarified. A dedicated mobile app to scan and verify validity of e-invoice quick response (QR) code will be provided by the government.
"These FAQs not only clarify the key doubts of the industry on the subject matter, but also throw light on the modus-operandi of e-invoicing system," said Abhishek Jain, tax partner at EY.
E-invoices will be needed for business to business transactions, for exports, credit and debit notes. Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens will also need e-invoicing.
E-invoicing will enable auto-reporting of invoices into GST return, auto-generation of e-way bills, facilitate standardisation and inter-operability leading to reduction of disputes among transacting parties, improve payment cycles, reduction of processing costs and thereby greatly improving overall business efficiency.