Yash Soni
by Yash Soni
After the introduction of goods and services tax in India, the government is focused on making compliance procedures digitised and automated. Toward this end, the government has taken the following steps:
Introduction of an electronic way bill
The generation of an electronic way bill (EWB) is required for the movement of goods valued over INR 50,000. The bill regarding EWBs was introduced on 01 April 2018 to monitor the movement of goods. An EWB remains valid for the period of one day for distances less than 20 kms (over dimensional cargo), 200 kms (other than over dimensional cargo), and includes an additional day for every additional 20/200 kms or part thereof. After it has been generated, an EWB cannot be altered or corrected, but it can be cancelled within 24 hours of generation.
Generation of an electronic invoice
Since it came into effect on 01 October 2020, a system of electronic invoicing has been applied to taxpayers if turnover exceeds INR 5 billion in any financial year from 2017–18 to 2021–22. The turnover limit was reduced to INR 200 million on 01 April 2022 to make the compliance procedure more automated and digitised. In the e-invoice system, B2B invoices are authenticated electronically by the Goods and Services Tax Network (GSTN) for further use. All the invoice details will be transferred from the IRP to the General Support Technology Programme (GSTP) and e-way bill portal in real time, which eliminates the need for manual data entry in a GST return.
QR code on invoice
The e-invoice generated for B2B supplies is required to have QR code. The government has made QR codes mandatory for GST invoices for businesses with a turnover of more than INR 5 billion and making a supply B2C. With QR codes businesses can generate any number of copies of an invoice. By scanning the QR code all important information contained in the invoice (such as GST number of supplier and buyer, invoice number, invoice value, date of invoice etc.), can be obtained.
The Indian government is reducing the turnover limit for the applicability of electronic invoicing and QR codes, which means their use will soon apply to more and more registered persons. The government is also focused on making its online portal more user-friendly and easy to use.
GGI member firmZinzuwadia & Co. CA Ahmedabad, IndiaT: +91 792 646 77 74
Advisory, Auditing & Accounting, Corporate Finance, Tax
Zinzuwadia & Co. (ZCO) is a Chartered Accountants / CPA firm in India, famous for their quality, integrity and commitment to professional responsibilities. ZCO is proud to have a well-trained professional team who can devise sound capital structure, efficient direct and indirect tax strategies.
CA Yash Soni is a member of the Institute of Chartered Accountants of India. He looks after the Indirect Tax Compliance Department at ZCO. He also overviews international accounting. Contact Yash.