The Companies registered under the Goods and Services Tax ( GST ) may have to issue an E-Invoice to its customers as part of Governments initiatives to curb tax evasion.
The move will enable the tax department to track the transaction on a real-time basis.
A recent ET report cited a government official privy to the deliberations saying that the government is looking to introduce electronic invoice mechanism under GST. However, this is expected to restrict some large companies initially. As per the report, the system will register every transaction of the GST network automatically.
The official was quoted saying, It is being examined… We are looking at if bigger companies could be brought in to begin with.”
In connection with this, the GST council has appointed a committee and has also constituted a sub-group to examine all issues related to e-invoice, operation treatment, a tentative timeline for execution and more.
The Group will examine and recommend on the business process and policy & legal aspects for generation of e-invoice.
The sub-Group shall consist of 1. Shri Upender Gupta Pr. Commissioner, GST Policy Wing, CBIC 2. Shri Manish Kumar Sinha Joint Secretary (TRU-II), CBIC 3. Shri Ritvik Pandey Joint Secretary (Revenue), DoR 4. Shri Prakash Kumar CEO, GSTN 5. Shri Dheeraj Rastogi Joint Secretary, GST Council.
The sub Group shall examine and recommend from time to time on all legal /policy aspects of generation of e-invoice, including inter alia invoice format, modification, cancellation of invoice, threshold turnover for invoice generation from the portal, immediate steps for B to B supplies with a high threshold turnover; invoice format in exceptional circumstances, if any, optional treatment for some sectors such as banking, telecom etc., tentative time line for execution, phase wise implementation i.e. extending coverage of e invoices for different categories of tax payers and consultation with other Stake holders.
Shri Ritvik Pandey, Joint Secretary (Revenue), DoR shall be the coordinator of this sub-Group and update the progress periodically.
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