The Central Board of Indirect Taxes and Customs ( CBIC ) has notified E-Invoice System mandatory for business with Rs. 100 crores turnover from April 1st, 2020. The E-invoice will be mandatory for both these businesses categories.
For businesses having turnover less than 100 Crore, it would remain voluntary and on trial basis from 1st April 2020.
The upcoming ‘E-invoicing’ system will be a boon to MSMEs as it will open the facility of instant bank loans for MSMEs. With the new system of E-invoicing, banks may not require a plethora of physical documents and their validation processes rather they can do MSMEs’ ratings for the loan on the basis of their e-invoicing.
Also, the E-invoicing will bring in ease of doing business as it will pre-populate the GST returns besides reducing the reconciliation problems.
In the Notification, the CBIC has also notified the GST electronic portals for the generation of e-invoice and E-Invoice Rules.
