E-Comm Firms May Have to Upload E-invoices for Vendors
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The government could soon permit e-commerce companies to upload GST e-invoices for vendors under the GST framework. A comprehensive list of clarifications in the form of FAQs has been issued as a part of the ongoing e-invoicing trials.

The clarification mentioned that an e-com operator could ask for an e-invoice on behalf of a supplier. The government has taken up the matter already and could allow e-commerce companies to upload e-invoices for vendors soon after the trial period is over.

Tax experts believe that permitting e-commerce companies to handle e-invoice compliance on behalf of their suppliers will be helpful to facilitate compliance for such kinds of suppliers. Starting 1 January, voluntary uploading of e-invoices has been initiated on the GSTN portal for businesses who have an annual turnover of more than Rs 500 crore. For businesses with more than Rs 100 crore (as their annual turnover), voluntary uploading of e-invoices will be initiated starting from 1 February.

Also Read: ITC without invoices allowed only to the extent of 10%

According to the FAQs issued by the GST network, only 10,000 line items will be allowed per e-invoice. Also, foreign service providers will need to constitute local entities in order to integrate with the Invoice Registration Portal (IRP).

Also, starting 1 April, a quick response (QR) code is going to be made mandatory for B2C invoicing which is issued by businesses whose annual turnover is more than Rs 500 crore. The e-invoice will help streamline the indirect tax system and also it will make sure there is better compliance by keeping a tab on tax evasion.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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