E-Invoicing is increasingly mandated by governments across the globe particularly due to GST evasion. Tax leakage and fraud using fake invoices have been an issue the government is trying to fight even before the GST era. E-invoicing in India is proposed to put an end to this by mandating authorization of every invoice from the government portal. Real-time invoice reporting discourages subsequent fraudulent changes/adjustments.
Ever since the introduction of GST in the Indian taxation system, GST officials have been diligent to work out a mechanism to stop tax evasion in India. Over the years, there have been instances wherein tax fraudsters have been caught using fake invoices to evade taxes or claim additional ITC. And such occurrence was only possible in the absence of a proper mechanism to tackle such a situation on a nationwide level. Thus, e-invoicing came into being! So, e-invoice generation and ITC Claim will go hand in hand. This may lead to lesser tax frauds in the near future.
Updated on 2nd Aug 2022: As per GST Notification 17/2022 dated 01-08-2022 mandates e-invoicing for taxpayers having AATO above Rs. 10 crores in any financial year since FY 2017-18 w.e.f. 1st October, 2022.
Updated on 24th Feb 2022: As per CGST Notification 01/2022 released on 24th Feb 2022, GST e-invoice has been made mandatory for entities with turnover of Rs. 20 Cr and above.
Introduction to E-Invoicing in India
While mainly perceived as technical change and low impact for business users, the organisations need to take some key decisions for integrating e-invoicing in their routine business operations without major disruptions. Aligning the business practices, choosing the best-fit solution and the right solution provider will ensure that e-invoicing seamlessly works for companies and is miles away from being an additional compliance burden.
The government had set up a committee, comprising central, state tax officials and GST Network Chief Executive to look into the feasibility of introducing the E-invoicing under GST to streamline the generation of invoices and ease the compliance burden.
Furthermore, to ensure smoother assimilation of the E-invoice mechanism into GST, businesses would also be provided with the software, which will be linked to the GST portal for generating E-invoice. The threshold for the same can be fixed on the basis of the value of the invoice.
To know more about E-invoicing mandate:
Beginner’s guide to
e-invoicing mandate in India
- Businesses will have to generate an electronic invoice either on a government portal or on the Goods and Services Tax (GST) portal.
- Businesses, with turnover above the given threshold, will initially get a unique number for every E-invoice generated.
- The unique number can be matched with the invoices reported in the sales return and taxes paid.
- The process of generating e-invoice would be similar to the one being followed for the e way bill on E-waybill.nic.in or GST payments.
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It is a one-stop E-invoicing solution that can integrate with your billing systems seamlessly in multiple ways and generate IRN with zero disruption to your business.
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