Page 38 - GSTL_6th August 2020_Vol 39_Part 1

J20 GST LAW TIMES [ Vol. 39
Abhishek Jain, Tax Partner, EY said, “A collection approximate to 86 per
cent of last year does showcase quite a significant economic recovery from the
pandemic though a bit of it could be on account of pent-up demand. With eco-
nomic activities increasing, the collections should hopefully witness aligning
with estimates soon.” M.S. Mani, Partner, Deloitte India said, “The progressive
unlockdown steps taken by various States in June are reflected in the improve-
ment in GST collections for July although the figures also includes some transac-
tions in respect of earlier months…the collections in many of the major States
coming close to last year’s collections indicates that the recovery process has
slowly started with the unlockdown process underway in these States.”
[Source : The Indian Express, New Delhi, dated 2-8-2020]

Government notifies e-invoicing for firms with ` 500 crore
turnover
The Government has notified an e-invoicing system under the Goods
and Services Tax (GST) regime which makes it mandatory for large businesses
with turnover of over ` 500 crore to submit sales invoices electronically.
The notification comes as a relief for small businesses as the turnover
threshold has been hiked from the earlier proposed ` 100 crore and above for
mandatory e-invoicing. The system is expected to be rolled out from October 1,
leaving barely a couple of months for businesses to modify their systems.
Units in Special Economic Zones have been exempt from complying with
e-invoicing, according to the notification released on July 30. The move comes as
the Government is looking at ways to plug evasion amid dismal GST collections
with the pandemic driving economy towards recession.
The e-invoicing mechanism would also help business and taxpayers by
pre-populating the returns, resulting in reducing reconciliation problems.
There are about 7,500 GST Identification Numbers for businesses with a
turnover of ` 500 crore and above.
M.S. Mani, Partner, Deloitte India, said modifying systems to support
e-invoicing in the prevailing working-from-home environment could be chal-
lenging for some businesses and hence there was a need to prepare early.
Abhishek Jain, Tax Partner, EY, said with this release, the Government
reimposes its objective of implementing e-invoicing from October 1 for large
businesses. “With only 60 days left for this compliance, businesses would need to
quickly evaluate the ERP changes needed and plan implementation well to en-
sure compliance from October 1,” said Jain.
The Government plans to rollout e-invoicing in phases. It had earlier
planned to make it mandatory from April 1 for businesses with a turnover of
` 100 crore and above, but the decision was deferred due to lack of IT prepared-
ness.
“We will not do it for (businesses with) ` 100 crore sales but will start
with ` 500 crore and as it stabilises, we will do it for (businesses with) ` 100 crore
sales and more,” Yogendra Garg, Principal Commissioner, GST policy at the
Central Board of Indirect Taxes and Customs, had said last week.
GST LAW TIMES  6th August 2020  38
( A20 )