In its 35th meeting, the GST council decided on a system of invoicing i.e., e-invoicing. This system of e-invoicing applies to few specific domains of people.
What is e-invoicing under GST?
To understand this better we need to know what is e-invoicing under GST?
Just like the e-way bill system, electronic invoicing under GST was introduced in the GST system on 1st October 2020. In this authentication billing process, all the bills are registered with the government on the invoice registration portal and thereby verified by generating a unique invoice reference number (IRN). The invoice that has completed the above-stated process and has acquired a unique IRN is considered genuine.
Why is e-invoicing introduced?
The generation of fake invoices has always been a cause of concern for the government. To curb this crisis and prevent tax leakage, the government introduced this step in a very organized and planned manner. The government wanted to bring about a change in the overall core business process of the current scenario. This demanding scheme would now push the business world to re-assess their technology field.
Further, a question strikes the mind: Who is eligible for the e-invoice in the GST system?
The government of India has launched electronic invoicing in steps through a much planned scheme. These steps are as described below:
However, there are businesses and people where this system is not implemented. This category was clearly stated in CBIC Notification No. 13/2020- Central Tax.
What are the benefits of e-invoicing under the current business scenario?
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