Absence of GST e-invoices from Big Firms, Buyers May Lose the ITC

The revenue department wants to collect the same amount as the taxes of the previous year, hence it is tightening the compliance requirements related to e-invoicing. Buyers need to ensure that appropriate e-invoices are issued to them by listed large GST-registered businessesGet to know the complete GST registration procedure online on the Indian government GST portal official website. We have explained by the actual screenshot of every step; If such e-invoices are not available then they may lose input tax credit.

A list containing more than 28,000 GST identification numbers has been issued by the department. All the Listed ones should only issue e-invoice for B2B sales of items. The rule will come into action from October 1 for firms having turnover more than Rs 500 crore.

By connecting the GST E-invoicing system with the central portal authorities made it possible to receive and validate invoices in real-time. It was also the reason that the proposed overhaul of the GST return-filing system View the full comparison report between old and new GST return filing system in a systematic manner. The new system will be applicable from July 2019 was dropped earlier this year as it was thought that e-invoice could achieve the same objective without disturbing the existing system.

Rajat Mohan, the senior partner at AMRG & Associates, said “Every business entity procuring supplies from large vendors must ensure that invoice issued to him is a valid e-invoice with an invoice reference number (IRN). Taxpayers need to doubly ensure that supplies received from the listed vendors must be backed by a valid e-invoice”.

Although the implementation of GST e-invoicing Get to know about the new E-invoice generation system on government GST portal with applicability. The system mandates to generate e-invoice for every sale by a registered business was postponed due to the epidemic, it is expected that it will be an effective addition to the existing GST compliance system when it will become mandatory for taxpayers having a turnover above 100-crore from 1st January 2021. The same will be introduced for all taxpayers from 1st April.

A Government Source stated that “Even though the current system is catching frauds of fake invoices but it’s flagged only when returns are filed every month but with the real-time nature of the e-invoices, that time won’t be available for unscrupulous elements”.

The source also added that Now that all invoices are being stored in a central database during issuance, taxpayers only have to file simple GST returns Get to know the online procedure of filing GST returns in India. We provide each and every GST form according to the taxpayers category at the end of the month. This would remove the need to upload invoices as a separate task, as it is currently being done.

While GST collection increased by 10% in the month of October and crossed the Rs 1 lakh crore mark for the first time in this financial year, the April-October collection in this financial year is about 80% of the previous year’s collection.