E-invoicing will become mandatory for more businesses in India. The Indian tax authority announced that the threshold for mandatory e-invoicing will be lowered from INR 50 crore to INR 20 crore. The new threshold takes effect from 1 April 2022.
Under India’s GST e-invoicing programme, businesses must submit electronic invoices via the government online e-invoice portal.
India introduced mandatory e-invoicing in 2020. However, authorities are taking a phased approach to implementation. In April 2021, the threshold was lowered from INR 100 crore to INR 50 crore.
E-invoicing in India boosts GST revenue
Reports suggest that India’s e-invoicing programme has been broadly successful. GST evasion has become much more difficult. And, authorities maintain, compliance is similar under the system.
Digital GST/VAT reporting is good for business
India is not the only country to introduce digital solutions to GST/VAT administration. In fact, e-invoicing and digital VAT reporting is becoming more common globally.
Experience shows that companies gain the most benefits from digital reporting when they have suitable technology and process in place. For example, more than half of UK business reported that electronic VAT compliance had made meeting their obligations faster and simpler. However, their success was highly dependent on having fully compatible VAT software in place. Businesses that do not have fully compatible software were less likely to report benefits from digital VAT compliance.
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