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GST Council sets up two sub-groups to look into aspects of e-invoice generation

Date: 30 May 2019 Tags: Public Finance

Goods and Services Tax (GST) Council has set up two sub-groups to look into policy and technical aspects, such as turnover threshold and mode of generation, for electronic invoices (e-invoices) generation by businesses. One sub-group will examine business process, policy and legal aspects for generation of e-invoice and other sub-group will recommend technical aspects for its roll-out.

Key Facts

  • Sub-group on policy issues: It has five members including officials from Revenue Department, CBIC officials, GST Council.
  • It will suggest some immediate steps to check fake invoices in case of business-to-business (B2B) supplies with a high threshold turnover and also recommend a carve-out for sectors like banking and telecom.
  • It will recommend legal aspects including invoice format, threshold turnover for invoice generation from portal and immediate steps for B2B supplies with high threshold turnover.
  • It will also suggest optional treatment for some sectors such as banking, telecom, tentative timeline for execution and phase-wise implementation.
  • Sub-group on technical issues: It has three members from GSTN, NIC and UIDAI.
  • It will suggest mode of generation, like app-based or mobile or SMS or offline and online, data security and system integration.

Way Forward

The e-invoice if implemented will help streamline indirect tax system and ensure better compliance by keeping check on tax evasion. Depending on success of project in B2B segment, Revenue Department (under Finance Ministry) will look at extending it to business-to-consumer (B2C) sales, especially in sectors where the probability of tax evasion is high.