The government will notify a new GST e-invoice scheme under which companies with Rs 500 crore turnover and above will generate all invoices on a consolidated platform of government beginning on October 1, an official said on Thursday. The turnover level for companies was previously set at Rs 100 crore.CBIC Principal Commissioner (GST) Yogendra Garg said that integrating the features proposed in the new system would further improve the current Goods and Services Tax (GST) return filing system.
"Yesterday, the GST Implementation Committee recommended that we continue with the October 1 deadline (for e-invoice). First of all, we won't do it for Rs 100 crore and above, as we had notified. We'll soon come out with a notification to make it Rs 500 crore from October 1st, and as they stabilize, we'll put a date for Rs 100 crore turnover people," Garg said at an Assocham event. This will notify the new turnover rate by next week, he said.
The purpose of the e-invoice was to curb GST evasion by the issue of fake invoices. In fact, it would make the process of filing returns easier for companies because invoice data would already be collected via a centralized portal. The government had said in November last year that electronic invoice (e-invoice) would be compulsory for companies with Rs 100 crore turnover as of April 1. The GST Council subsequently extended the implementation date to October 1, in March 2020.
The Council has exempted the issuance of e-invoices from insurance, finance, financial institutions, NBFCs, and passenger transport services. This had also agreed between October 2020 and January 2021 to implement the new GST returns filing system in phases. The Council also exempted the issuance of e-invoices from insurance, finance, financial institutions, NBFCs, and passenger transport services. This had also agreed between October 2020 and January 2021 to implement the new GST returns filing system in phases. Garg said there wasn't a single month in the last 3 years of GST which saw returns being filed by all GST registered companies.
Approximately 70-80 percent of GST companies registered file returns within the due date."2019-20 was a year of restructuring of the compliance requirement. We made a call that, instead of implementing the new return scheme that we had planned, we would strengthen the current return scheme and get it closer to what we had planned in the new return scheme to build credit certainty," he said.ReaGarg said that the GST administration is working on a plan to make a program accessible to companies on how much input tax credit (ITC) a taxpayer needs to get.
"The aim is to make life easier for taxpayers. GST 's 4th-year vision is to reduce the compliance burden and e-invoice will help," he said. As for GST audits, Garg said central tax officers were training state officials on the audit experience, some of the states had some strong approaches that we are working on."Such arrears will not be physical audits to the extent possible, they will be more office audits," he said.
