GST Compliance tightened: Buyers from big firms to show valid e-invoices for tax credit

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Aiming to collect almost the same sum as taxes as last year, the revenue department is tightening compliance requirements related to e-invoicing. The buyers are required to ensure proper e-invoices are issued to them by listed large GST-registered businesses; in the absence of such e-invoices, the buyers could lose input tax credit.

A list released by the department includes over 28,000 GST identification numbers that must only issue e-invoice for the B2B sale of items. The rule came into effect from October 1 for firms with more than Rs 500-crore turnover.

E-invoicing system is connected to a central portal which receives and validates invoices in real time. It has been touted as a game changer, and one of the reasons why the proposed overhaul of the GST return-filing system was abandoned earlier this year as it was thought that e-invoicing could achieve the same objective without unsettling the current system.

Source from: https://www.financialexpress.com/economy/gst-compliance-tightened-buyers-from-big-firms-to-show-valid-e-invoices-for-tax-credit/2122777/

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