On the very first day of the e-invoicing system, more than 8.40 lakh IRNs were generated by 8,453 users while on October 7, about 13.69 lakh IRNs were generated by 14,100 users. More than 69.5 lakh IRNs were generated by some 71,000 users.
“It is a great step forward as e-invoicing has many advantages both for the business and the tax administration. Buyers and sellers will be able to have real time information of the invoices,” said Pandey, after a high level meeting attended by officials of GST, Central Board of Indirect Taxes and Customs, NIC and GST Network.
The electronic invoicing system for business-to-business transactions was implemented on a mandatory basis for companies with an annual turnover of above Rs 500 crore. By January 1, 2021, e-invoicing will be available to taxpayers having a turnover more than Rs 100 crore. It will be finally made available to all taxpayers for B2B transactions from April 1, 2021.
E-invoicing replaces the physical invoice and will soon replace the existing e-way bill system, and taxpayers will not have to generate separate e-way bills, Pandey said.
“Furthermore, the e-invoicing system can also eventually dispense with the present system of filing GST returns for smaller businesses and MSMEs because e-invoice will pre-populate their returns and they have to simply pay the taxes. The returns will be automatically generated for all supplies for which e-invoice have been issued,” he added.
The government expects e-invoicing to have also other major advantages, such as improving the payment cycle for industry and giving boost to invoice-based lending to MSMEs.