New Delhi, Jan 6: Businesses with a turnover above Rs 5 crore will face a new requirement starting March 1. They will not be able to generate an e-way bill without including e-invoice details for all business-to-business (B2B) transactions.
Under the goods and services tax (GST) regime, e-way bills are mandatory for interstate transportation of goods valued over Rs 50,000.
The National Informatics Centre (NIC) has found that some eligible taxpayers are issuing e-way bills without linking them to e-invoices for B2B and business-to-export (B2E) transactions. This has caused discrepancies between the invoice details entered separately under the e-way bill and e-invoice systems.
To address these discrepancies and avoid mismatched statements, the NIC has announced that e-way bill generation will not be allowed without e-invoice details for eligible taxpayers starting from March 1, 2024. This rule applies to e-invoice-enabled taxpayers and transactions related to B2B supplies and exports.
However, e-way bills for other transactions, such as business-to-consumer (B2C) and non-supplies, will continue to function as usual without any changes, according to the NIC.
It is essential for businesses with a turnover above Rs 5 crore to ensure that they include e-invoice details when generating e-way bills for B2B transactions. Failure to do so could lead to non-compliance with the new rules and potential issues with the GST regime.
This announcement serves as a reminder for eligible taxpayers to review their processes and make the necessary adjustments to ensure compliance with the new requirements. By aligning the e-way bill and e-invoice systems, businesses can avoid discrepancies and ensure smoother transactions within the GST framework.
The new rule aims to improve transparency and accuracy in businesses’ tax compliance, facilitating a seamless flow of goods across state borders. It is expected to strengthen the overall efficiency of the GST regime and enhance the government’s ability to track and monitor transactions.
As the March 1 deadline approaches, it is crucial for businesses to prepare and update their systems accordingly. By incorporating e-invoice details into the e-way bill generation process for B2B transactions, businesses can ensure a smooth transition and continue operating within the legal framework.
The introduction of this requirement underscores the government’s determination to streamline the GST system and foster a more transparent and accountable business environment. It is advisable for businesses to stay updated on any further developments and comply with all applicable regulations to avoid penalties or disruptions to their operations.
In conclusion, businesses with a turnover above Rs 5 crore must include e-invoice details when generating e-way bills for B2B transactions from March 1. This requirement aims to align the invoice and e-way bill systems, enhancing transparency and compliance within the GST framework. It is crucial for businesses to prepare for this change and ensure a smooth transition to avoid any disruptions in their operations.
