The tax authorities are planning to bid farewell to the existing GST e-invoicing (online billing) system which is currently used by lacs of businesses in the country for generating supply bills.
E-invoicing is the online invoice generated for the goods sold. After the confirmation from both parties, a unique number is generated. The bill with its number will be recorded in the GST return of the businessmen.
As per the sources, initially, the small companies, financial technology companies and brokerage houses will remain away from the sequence which means this trial and error course will be effective to medium businesses. The definite law is supposed to be executed across the nation from January 2020.
The trial and error period of GST e-invoicing system may start from October till November. The companies issuing invoices in large numbers and on a daily basis may not come under the rim of the pilot project starting from October 2019. Companies’ exemption from this pilot project will be decided based on their turnover. Companies with an annual turnover of 10 to 15 Crores may also be exempted from this pilot project.
The government is bound to take such a dynamic decision as more than 11 Thousand Crore GST has been stolen making fake invoices. This is the step towards preventing GST fraud. Things will be in favour of honest taxpayers but the fraudulent need to worry about the consequences. The plan is to pull the cords of corrupt businessmen.
The final decision is yet to be taken in the 37th GST Council meeting which is supposed to be on 20 September. The council may also discuss reducing GST on automobiles.
