New Delhi: Soon, top companies have to use a common GST portal to issue invoices to their customers as the government is planning to introduce electronic invoice system under GST. The move is aimed to curb tax evasion as the government will be able to track the transaction on a real-time basis.
A recent ET report cited a government official privy to the deliberations saying that the government is looking to introduce electronic invoice mechanism under GST. However, this is expected to restrict some large companies initially. As per the report, the system will register every transaction of the GST network automatically. The official was quoted saying, It is being examined… We are looking at if bigger companies could be brought in to begin with.”
The report further mentioned that the GST council has appointed a committee and has also constituted a sub-group to examine all issues related to e-invoice, operation treatment, a tentative timeline for execution and more.
As per experts while e-invoicing will benefit the companies as well the government, proper time needs to be given for execution. Indirect Taxes, PwC national leader Pratik Jain told the financial daily, “To the extent of e-invoices, data should be automatically populated in the GST returns and hence compliances would be simplified. However, industry needs to be given adequate time to prepare for this significant change.”
Worth mentioning here is that The GST council is likely holding its next meeting mid-June ahead of the Budget. The council will take stock of the GST collection pattern and the steps to curb tax evasion. ET Now learnt from sources that the council will also focus on ease of filing taxes, merging the tax slabs of 12% and 18% etc. so some tweaks can be expected.