New Invoice Management System for GST to be Implemented from October 1
Businesses in India need to prepare for a new invoice management system under the Goods and Services Tax (GST) that will be introduced from October 1, 2023. This new system will allow taxpayers to efficiently address invoice corrections and amendments with their suppliers through the GST Network portal.
The system will also facilitate taxpayers in matching their records and invoices with those issued by their suppliers, enabling them to avail the correct Input Tax Credit (ITC). Recipient taxpayers will be able to accept, reject, or keep invoices pending in the system for later use.
This new system is expected to bring more efficiency and transparency to compliance procedures for taxpayers under GST. Experts believe it will streamline compliance and optimize the claim process for ITC.
While the GST Network has long advocated for a system of invoice matching, recent amendments to the CGST Act have led to the omission of enabling provisions. However, advanced technological solutions will be essential for businesses to adapt to these crucial transitions.
Companies will need to revisit their compliance processes and gear up their systems to quickly adhere to this new requirement. The practical benefits of the system to taxpayers will become clearer as it is implemented.