GST Invoicing Norms Relaxed
The stringent norms and elaborated format of invoicing under GST, aimed to capture the minutest of the detail in a transaction were a nightmare and ate lot of precious time for the B2C businesses, which issue bulk invoices.
Feeling the honest pinch and to make the proceedings smoother and fast, the GST Council has consented for 2 important amendments, based on the commendations of the fitment and law committee constituted for the queries and demands of the stakeholders:
- The invoice structure would be amended and only the most relevant and information seeking columns will find a place. Retail invoices now will not capture the detailed pricing and taxes for each item and will overall be shortened consuming lesser time.
- The items taxed at 0% rate can now be merged with the other taxable items in the same invoice and the provision of issuing a new invoice for such items, has been eliminated.
Until now, all items with their respective prices and taxes were being mentioned separately. Merchants were strongly advocating the fact that the end consumer was least concerned with a detailed tax break up but was concerned with only the net sale price. The GST Council earlier was apprehensive about it from the ‘buyers’ rights to know their taxes’ perspective. However, the business community backed by the industry and tax experts were able to convince the council and made them buy their logics of amended invoicing norms.
The two changes would definitely lubricate the invoicing lifecycle and also the GST return filing process. Issuance of a single invoice cum bill of supply for all goods taxed at one rate and just citing the total tax once will lead to much uniform, simpler and fast invoicing.
As reported in Economic Times.