|
|
|
|
SMEs supplied by large cos could face ITC denial over wrong e-invoice
|
|
|
|
| Top Stories |
 |
|
|
|
SME Times News Bureau | 06 Nov, 2020
Small businesses will need to be extra careful while taking supplies
from big vendors from November as they would not be able to claim input
tax credit on such supplies if the supplier has issued a non-compliant
e-invoice.
The government has made e-invoice generation mandatory
for all businesses with a turnover of over Rs 500 crore from October 1
with some relaxation available till the end of the month. What this
means is that any supplies made by these large corporations without
proper e-invoices will deny even the receiver of goods and services the
claim made over ITC (input tax credit).
E-invoicing is a system
wherein invoices generated for each transaction are registered
electronically by the Invoice Registration Portal (IRP) for use on the
common GST portal. The system curbs tax evasions and checks fake and
fraud invoices while helping in establishing an audit trail of B2B
invoices presenting data in a standardised format.
Sources said
that the Central Board of Indirect Taxes and Customs (CBIC) may disallow
claims of ITC made by a trader that receives goods and service against a
non-compliant e-invoice or where e-invoice had not been issued at all.
This,
sources said, will follow from provisions in CGST wherein recognition
of a e-invoice issued in violation of rule 48(4) of the CGST Rules 2017,
is not considered valid.
"Taxpayers, before procuring any
supplies from large vendors, must ensure that e-invoice is issued to
them for the said supplies. In case of any default by the supplier in
issuing an e-invoice, entire tax credit on the said invoices would be
negated, resulting in dead loss to the recipient," said Rajat Mohan
Senior Partner at AMRG & Associates.
"Citing the importance
of e-invoicing compliance by suppliers National Informatics Centre has
issued a list of entities registered for issuing e-invoices," he added.
What
the staggered implementation of e-invoicing norms has done is that it
has made the process cumbersome for businesses as they would now have to
maintain a check on the authenticity and correctness of e-invoices
generated by their suppliers or else they could be be denied tax credits
available under the GST system.
The Finance Ministry had made
e-invoicing mandatory for all organisations with turnover exceeding Rs
500 crore from October 1. Those above Rs 100 crore turnover are required
to follow e-invoicing from January 1, 2021 followed by a roll-out for
all taxpayers with effect from April 1, 2021.
The Rs 500 crore
turnover has brought who's who of India Inc. under the new e-invoicing
regulations. These include companies like Vodafone, Exide, ABB, Abbott,
Reliance Industries etc.
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
| Japanese
Yen |
55.05 |
53.40 |
| As on 12 Oct, 2024 |
|
|
| Daily Poll |
 |
 |
| Do you think Indian businesses will be negatively affected by Trump's America First Policy? |
|
|
|
|
|
| Commented Stories |
|
|
|
|
|
|
| |
|
