GST e-Invoices Will Be Live From January 1st: Now Machines Will Read Invoices For Error-Free Reporting
With the start of the coming new year, there will be a new invoicing system that will be introduced in the GST system. There have been a lot of instances where manual errors and duplication of data caused, which will no longer be the issue anymore.
This is a system developed by the Institute of Chartered Accountants of India (ICAI) and information technology. It will be a standardised protocol and through this system, machines will be able to read electronic devices.
How will this system work? Find out all the details right here!
New E-Invoice System: Machine-Readable And Free Of Errors
This system, or e-invoice system as it is also called, will be developed by NIC, and will be rolled out in phases. Initially, from January 1, 2020, it can be used by taxpayers with a turnover of more than Rs. 500 crore voluntarily, whereas, those who have a turnover of Rs. 100 crore, can employ the system from February 1, 2020, voluntarily.
There is a possibility that this will be made mandatory for the taxpayers who have a turnover of more than April 1, 2020, after which, the turnover threshold will be brought down so that the remaining lot will be covered.
The GSTIN and ICAI have built a standard, and also obtained the approval of the GST Council three months ago. These e-invoices can be read using online/offline and on mobiles as well.
Automated Return Will Enable Ease Of Operations
There will be an automated ‘return’ system designed by the GST which will be based on the e-invoices generated and delivered to a trader with a digital signature. This will also make sure that there are no hassles such as taking advice from an advisor to file the income tax returns.
Prakash Kumar, Chief Executive Officer of GSTN, said, “An e-invoice shared by a seller with his buyer or bank or agent or any other player in the supply chain can be read by machines, thus eliminating data entry errors.”
He also said that traders could use the different formats that have been given by different software applications depending upon the trade that they do. If an invoice is generated on one particular system, it will not be read by any other system that doesn’t have the standard format.