GST e-invoices are now needed for businesses with a turnover of more than Rs 50 crore
From April 1, 2021, the government made e-invoices mandatory for companies with annual sales of more than Rs 50 crore. From October 1, 2020, and January 1, 2021, e-invoicing for business-to-business (B2B) transactions will be needed under GST law for companies with a turnover of over 500 crore and 100 crore, respectively.
Taxpayers must produce invoices on their internal systems (ERP/accounting/billing software) and then report them to the Invoice Registration Portal online under e-invoicing (IRP).
The IRP will verify the details in the invoices and send the taxpayer digitally signed e-invoices with a specific ‘Invoice Reference Number (IRN)’ and a QR Code.
In the three years leading up to the financial year 2020, 3,82,875 companies have been struck down, according to MCA
“Shell Companies” were listed based on non-filing of Financial Statements for two years or more, and after following due process of law as provided under Section 248 of the Act, 2013 read with the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, a total of 3,82,875 companies were struck off in the last three years up to F.Y. 2020. Furthermore, no businesses have been struck off the list for the 2020-21 fiscal year.
The Minister went on to say that the Companies Act of 2013 contains no description of the word “Shell Company”. It usually refers to a corporation that has no active business operations or substantial assets and is used for criminal purposes such as tax evasion, money laundering, obscuring ownership, and benami properties, among others.
The government’s Special Task Force to look into the problem of “Shell Companies” has proposed, among other things, the use of certain red flag indicators as warnings for identifying Shell Companies. The government has launched a Special Drive to identify and delist such Shell Companies.
Action initiated to control fraudulent companies
The Companies Act, 2013 does not describe the term “fraudulent business.” The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (ROC) in Manesar, however, registers new businesses in accordance with the statute.
MCA has taken several measures to improve the process of registering new businesses, such as introducing the SPICe type, which significantly reduces the processes, time, and expense associated with forming a business. Since February 23, 2020, the SPICe form has been replaced by the SPICe+ web form, which provides 10 services from three Central Government Ministries, the Maharashtra State Government, and six public and private sector banks, reducing the number of procedures needed to start a business in India. Since March 2006, MCA has been implementing a comprehensive end-to-end e-Government project dubbed “MCA21” for discharging its statutory functions in order to improve government accountability, pace, and performance.