The GST Council, in its 35th meeting, has decided to implement a system of E-invoicing, which will be applicable to specified categories of persons. In the 37th GST council meeting, the standard of new e-invoice mechanism was discussed and approved and the same along with the schemes are published on the GST portal (https://einv-apisandbox.nic.in). The 39th GST council meeting held on 14th March 2020, discussed issues related to various procedures in GST laws relating invoicing, Periodical Return Forms and Refund etc.; subsequently on 21st March 2020 a Notification was issued regarding deferment of implementation of e-invoice. Notification No. 13/2020-Central Tax shall come into force from 1st October 2020, which hereby “notifies registered person, other than those referred to in sub-rules (2),(3), (4) and (4A) of rule 54 of the said rules, whose aggregate turnover in a financial year exceeds one hundred crore rupees, as a class of registered person who shall prepare invoice and other prescribed documents, in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person.”
It is very important to understand the advantages, need and limitations for E-invoicing before going to the concepts and process of issuing E-invoice.
Advantages of e-Invoicing:
Limitations of Current E-invoicing model:
1. The new system facilitates e-invoicing of B2B invoices only and not B2C invoices and Bill of Supply.
2. Maximum number of frauds happen in B2C invoices where question of availment of ITC is not involved hence the basic purpose or advantage of E-invoicing will be fulfilled only after complete implementation for all types of invoicing.
Operating hurdles to be tackle carefully:
The first and major hurdle is the capacity for uploading data should be sufficient and generation of Unique number should be quick. Up to date technology should be used to ensure minimum downtime as the same may impact compliance entirely. Secondly the process should be user friendly and option of Saving (draft), editing before submission should be available to reduce final generation of Unique Number easy.