Rs 50-Crore Turnover Threshold To Apply From April 1

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India is expected to introduce the third phase of mandatory e-invoicing under the tax regime for goods and services from the beginning of the next fiscal year.

Registered companies with sales over 50 billion rupees will have to issue electronic invoices for reported business-to-business transactions from April 1, according to a government release.

This system was first introduced in October for companies with a turnover of over 500 billion rupees, while companies with more than 100 billion rupees were covered in the second phase. In the case of electronic invoicing, a smooth implementation has been carried out in the GST portal without critical errors.

E-invoicing was originally proposed in the 2019 budget to curb invoice fraud and enable real-time invoices to be tracked. The Covid-19 pandemic delayed its initial implementation and prompted the government to revise sales thresholds.

A special web portal is used for this – the common electronic portal for the taxation of goods and services and the invoice registration portal. Companies create primary invoices using their internal ERP solutions. The ERP data is then transferred in a fixed format into the electronic scheme – forms – prescribed by the GST department before the goods are shipped to the buyer.

Mandatory information such as the name of the supplier and recipient, address, registration number, date and time of delivery, invoice date, applicable GST rate and HSN number for the goods must be provided for the creation of the electronic invoice, among other things.