he government has been precisely working on Digital India to eliminate black money and tax evasion. So the taxpayers have been incentivized to promote electronic transactions. Now the government is planning to introduce electronic invoicing under GST as a part of Digital India.
hen will it come into force?
The newly elected finance minister has set up a committee to bring in an electronic invoicing under GST. This committee will study the feasibility of e-invoicing, its threshold limit and will consider the issues to streamline the process.
When the committee provides its report to the government, it will notify the taxpayers who will be liable and how to work on it.
How will it affect taxpayers?
Once the electronic invoicing comes into force, taxpayers will have to generate invoices through GST portal compulsorily. They will have to shift to online invoicing from current method of invoicing through accounting software
How will the E-invoicing be beneficial?
This will obviously help the government to keep track of the supply chain of the market and ensure its revenue from the indirect tax.
After the e-envoicing the government can keep track of transactions of businesses and assure that every business has been paying their tax liability.
From the taxpayer’s prospective, It will reduce compliance cost and provide real-time validation of invoices generated by the taxpayers.
Will it be applicable for all taxpayers?
The government has set up a committee for analyzing how it will be made applicable. It is certainly possible that the government will set the threshold limit to whom it will be applicable. Till such notification, we have to wait and see how it will be brought into force.
Hope it helps you.