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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:

Hope, this article made you understand the new invoicing rules published by GST Council, for any further clarification you can reach us.