Indian e-invoicing mandate: Why choose a global service provider and open business network?

Blog Industry trends July 4, 2019

New regulations for mandatory e-invoicing in India will enter into force in 2020 and businesses must find the right solution to fulfil the requirements. Here we describe the shortcomings of GST Suvidha Providers, pure compliance vendors and closed networks and explain why a global service provider is the most efficient way to become and stay compliant.

Mandatory e-invoicing in India

From 1 October 2020, e-invoicing will be mandatory in India for businesses with a previous year’s revenue greater than Rs 100 crore (approx. Euro 13 million). Invoices that do not fulfil the new requirements will be considered invalid.

With new regulations looming, businesses are searching for a solution to be able to comply. It is often hard to find services tailored to the needs of each business—especially in an environment where everything changes so quickly and it is vital to adapt accordingly.

Challenges with GSPs and pure compliance vendors

To fulfil the mandate requirements, Indian businesses could opt to work with a GST Suvidha Provider (GSP). A GSP is a service provider approved by the Goods and Services Tax Network (GSTN) that assists interaction with GST systems through a web platform.

GSPs can be helpful, but they do not sufficiently monitor changes made to e-invoicing mandates or help businesses adapt quickly. It is also crucial to emphasise that GSPs only provide local services in India and do not enable cross-border exchange.

The only connection a GSP facilitates is between an Indian business and the GSTN. The service neither connects businesses to each other (B2B invoicing) nor to government authorities (B2G) outside of India.

Another option that falls short is a pure compliance vendor whose sole focus is on regulatory compliance. Pure compliance vendors lack the wider perspective businesses need when they start going digital in their operations. Digitalisation efforts by Indian authorities will soon lead to the need for businesses to adapt their accounts receivable and payable processes, which pure compliance vendors simply cannot help with.

The solution: a global service provider and open network

Fortunately, there is an answer to these problems. A global e-invoicing service provider with an open, interoperable network combines separate services of multiple service providers and vendors into one complete solution.

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The right service provider not only takes care of local requirements but also stays two steps ahead of technical and regulatory developments in every country and region a business operates. Beyond this, they focus on more than just compliance with additional digitalisation services that help businesses prepare for the future.

Achieving compliance is not enough – maintaining it is key

With expanding government-driven regulations and new technologies becoming available every day, complying with local rules is increasingly challenging.

As the Indian e-invoicing mandate approaches, Indian authorities are still publishing new developments and making changes to the rules. This is very likely to continue even after the order enters into force. Mandates and related practices are never static and change very quickly all over the world.

All of this considered, maintaining local compliance is burdensome for businesses. A global e-invoicing service provider, however, eliminates the need for businesses to sift through constantly changing requirements. A comprehensive service, continuously updated platform and zero downtime automatically keep businesses updated and ready for future changes.

Pagero—global reach and local compliance worldwide

Pagero is a global e-invoicing service provider backed by the power of an open business network. We provide a single service that lets your business not only become and remain compliant but also connects to a worldwide network of private companies, governmental hubs and other service providers and networks.

Pagero’s in-house regulatory affairs department closely monitors changes to regulatory frameworks. We dedicate ourselves to staying informed, anticipating obstacles and providing immediate solutions so your business stays compliant no matter what.

Our internal Special Interest Groups (SIG) for compliance ensure that we integrate best practices into all parts of our organisation. Pagero’s compliance services cover multiple fields including e-documents, e-archiving, e-reporting, indirect tax and data privacy.

More than a compliance service, we also specialise in AR and AP Automation and solutions for the complete digitalisation of P2P and O2C processes. These services are available to all businesses, regardless of size, industry or digital capabilities.

With all the moving parts involved when an e-invoicing mandate comes into effect, the seemingly simple options for compliance often come with unexpected complications. Why limit yourself to pure compliance vendors or closed networks when you can let an open, global network take care of the technical and regulatory requirements across your entire business operations in a single streamlined process?

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