CBIC has issued FAQs on e-invoicing system that it is planning to introduce from 1st October, 2020 onwards. Businesses with turnover of Rs.500 crores and above will generate all invoices on centralised government portal. The e-invoicing will be aimed at curbing fake invoicing. It will cut down errors on the system and make filing simpler and smoother.
It will actually be useful for the MSME sector, because what happens today in India is that there is no payment culture at all. Companies pay at their whims and fancies, and many a times, they do not even book the invoices in their system for months together. If by this e-invoicing system, MSME suppliers are able to record their invoices on the portal, then companies will not be able to escape their liability. That is my view. But right now only large companies with turnover above Rs.500 crores are required to upload their invoices on the portal.
The FAQs on e-invoicing is available at this link i.e.