New E-invoicing system for all invoices of sales and purchase will be announced soon.
Currently, the government has only prescribed the format and particulars to be included in the invoice. However, it is decided to replace such invoices with the government prescribed e-invoice from January 2020.
The goods and services tax (GST) council meeting on September 20 will deliberate on new format and system for issuing of e-invoice.
The Union government has already announced the proposal of an e-invoice system to replace all sales and purchase invoices from January 2020 and in the upcoming GST council meeting, the government is going to unveil the new prescribed format and the system through which an e-invoice can be generated.
The Proposed e-invoice will be a standard template of GST invoice and a unique invoice number which will be generated through a system created by the GST Network.
This unique invoice reference number (IRN) or the unique invoice number, will be based on the computation of a firm’s GSTIN, which is its GST registration number.
Also, the government nominated registrars will issue the e-invoice on request of a taxpayer that is a seller or a buyer. Invoice requests can be sent by a taxpayer through the web, API, SMS, mobile app or offline tool to the registrar to ensure wide coverage even in the remote areas.
The government’s intention to incentivize digital payments made via QR codes, hence, the proposed e-invoice will be digitally signed by the registrar and it will also have a QR code.
The government wants a mandatory QR code, which will be printed by the GST registrar and a print can be taken out by the taxpayer to be sent as an invoice number.