The Ministry of Finance has notified the applicability of mandatory e-invoicing for B2B transactions with effect from 1st April 2022 for taxpayers having annual turnover of more than ₹20 crores, vide Notification 1/2022 – Central Tax. With this new reform start-ups and SMEs will join larger organizations in having to comply and contribute to a more transparent tax ecosystem. This tax reform enables smoother payments, close to zero tax frauds, increase in trade financing and much more. However, this notification does not apply to B2C transactions. Registered persons having turnover more than ₹500 crores are required to generate dynamic QR code.
Cygnet Infotech has announced a custom solution for small businesses to ensure compliance in a cost-effective and timely manner. The solution comes with e-invoice generation capabilities, a ready-to-go tally connector and invoice generation tools. It also offers the option of a simple GST compliant financial accounting software for businesses. This will ensure that organizations can generate e-invoices and e-waybills directly from this accounting software. A team of tax technology subject matter experts has been put in place to help proprietors of small businesses fully understand the compliance norms and equip them with technology-enabled software solutions. The team assures of a 24-hour turn-around-time for deployment, by leveraging in-house automation tools. The team has been supporting SMEs as well as tax consultants, ERP integrators and billing solution providers to help them provide an effective solution for their clients.
Commenting on this, Mr. Niraj Hutheesing, Founder & Managing Director, Cygnet Infotech said, “This notification will further boost tax revenue and improve transparency in the tax ecosystem. We want to do everything we can to help start-ups and small businesses digitize and remain competitive. Our ready-to-deploy solution ensures timely compliance so that small businesses can stay focused on their growth.”
News first published in CXO Outlook.