Mandatory Compliance with E-invoicing Requirements for Taxpayers exceeding Annual Aggregate Turnover of INR 100 Crore

The Indian Government has issued a notice stating that effective 1st January, 2021 any taxpayer with an annual aggregate turnover of more than INR 100 crore (USD 13.5M) in the course of the previous financial years, beginning from 2017-2018, would be mandatorily required to comply with e-invoicing requirements.

What are the specified E-invoicing Requirements?

Under E-invoicing, the taxpayers are required to organize their current billing processes and set their ERPs in order for all B2B transactions. These are to be issued via the GST Invoice Registration Portal (IRP). Once the e-documents (invoices,credit/debit notes, etc) are submitted and validated, a unique Invoice Reference Number (IRN) is generated along with a QR code for both the supplier and buyer to authenticate this registration.

Any document issued without an IRN and QR code would not be considered as an authentic GST document and might result in possible repercussions for Non-Compliance which might further lead to the rejection of Input Tax Credit for the invoice receiver.

What should be the next steps?

E-invoicing can largely affect the working capital and trade relations of a business, along with having an impact on internal tax functions. It is of utmost importance that you begin preparations now to facilitate smooth E-invoicing compliance as well as to avoid unwanted consequences.

We are here to take away your worries and ensure you have a hassle-free journey. Reach out to us at +91-7982547826/+91-9810376247, or write to us at compliance@vlinkcorp.com.

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