New E-invoice System and and QR Code on Invoices
From 1st April 2020 a new invoicing system is going to be implemented in the GST era to help business and to reduce the difficulty faced by various business stake holders.
In this new system an e-invoice need to be raised by a trader which can be read by computer systems using dynamic QR code up or down the supply chain. As per available information end-user or customer can also use software to read/verify the data.
As per notification the same e-invoicing system shall be implemented in phases for B2B operations as stated below:
- Taxpayers with a turnover of over Rs. 500 crore can implement it on voluntary (trial) basis from 1st January 2020,
- Taxpayers with a turnover of over Rs. 100 crore can adopt it (on voluntary trial basis) from 1st February 2020.
However, it shall be made mandatory for all taxpayers with a turnover of over Rs. 100 crore from 1st April 2020.
Other Important Points:
- The e-invoice schema and template, as approved by the GST Council, are available in the GSTN website,
- Following would be Common GST Electronic Portal to be used for the purpose of preparation of the E-invoice in terms of rule 48(4):
- An invoice issued by a registered person, whose aggregate turnover in a financial year exceeds INR 500 crores, to an unregistered person, shall have Quick Response (QR) code.
- Dynamic Quick Response (QR) available to the recipient through a digital display, shall also be deemed to be having Quick Response (QR) code.
Hope, this article made you understand the new invoicing rules published by GST Council, for any further clarification you can reach us.