Tax Alert: Revised format/ schema for E-invoice w.e.f. 01 October 2020
31 July 2020
Based on the recommendations of the GST Council, the government has decided to implement the first phase of E-invoicing requirements w.e.f 01 October 2020, for taxpayers whose turnover is more than INR 05bn or more, which would bring consistency, machine-readability and uniformity, consequently streamlining data errors and reducing tax evasion.
Earlier the e-invoicing requirement was proposed for taxpayers whose turnover was more than 01bn, however with exemptions to banking companies, non-banking financial companies, other financial institutions, Goods Transport Agency (GTA), provider of passenger transportation services and Multiplexes.
With the present notification, the government has extended the exemption to Special Economic Zone (SEZ) units as well.
A revised format/schema has also been released for the smooth adoption of the functionality.
BDO Comments
Businesses should ensure that appropriate modifications are made to the ERP systems to be in sync with the revised schema and requisite validations/ tests to be undertaken to bridge the gap, including realigning of invoicing process from data entry to printing, to go live on the roll-out.