The GST Council has approved introduction of ‘E-invoicing’ or ‘Electronic Invoicing’ in a phased manner for reporting of business to business (B2B) invoices to GST System.
Earlier from criteria for 500 Cr +, GST council has made it mandatory for E-invoicing for all businesses from 01 April 2021 for 50+ Cr Turn over Company and soon shall be applicable for all.
For standardizing the e-invoice in country, standard has to be finalized after consultation with trade/industry bodies as well as ICAI after keeping the draft in public place. For a good standard ensure complete inter-operability of e-invoices across the entire GST eco-system so that e-invoices generated by one software can be read by any other software, thereby eliminating the need of fresh data entry – which is a norm and standard expectation today.
The machine readability and uniform interpretation is the key objective. This is also important for reporting the details to GST System as part of Return. Apart from the GST System, adoption of a standard will also ensure that an e-invoice shared by any player in the whole business eco-system can be read by machines and obviate and henceeliminate data entry errors.