While the government has made e-invoicing mandatory for firms with turnover above Rs 5 crore, stakeholders say such firms would face challenges in implementing the technology.
Small enterprises, which have been recently brought under the e-invoicing mandate, should be given an exemption for any oversights for at least one year, as they will face challenges in adopting the technology and upgrading their accounting systems, stakeholders said.
The Union government in a May 10 notification lowered the threshold for e-invoicing from Rs 10 crore to Rs 5 crore, following which it will be mandatory for smaller businesses to carry B2B transactions via e-invoices.
Though e-invoicing will be challenging for small businesses to implement and will increase their costs, in the long run, it will streamline their processes and is likely to bring in more transactions from large enterprises, experts said.
The GST legislation restricts credit availed by buyers based on invoices available in GSTR 2B, which means that they will not be able to avail ITC unless the sellers generate e-invoices. There is an implication for large clients as well who procure from smaller taxpayers as they will have to ensure that sellers generate e-invoices to avail ITC.
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