Regulatory updates - India

The new feature in the EWB system aims to allow taxpayers in Kerala State to generate EWB for goods covered under Chapter 71.  

The feature excludes the generation of EWB for imitation jewelry and applies only to the intrastate movement of those goods within Kerala.  

For imitation jewelry goods, the taxpayers can continue generating EWB using the usual option in the system. 

The glossary describes what is e.g. an e-invoicing, the Invoice Registration Portal (IRP), the Invoice Reference Number (IRN), the difference between Debit and Credit Note and the e-invoice QR code. The list is broader and explains also the technical matters e.g. JSON format and API connection for e-invoice reporting via IRP.

The guide further explains the details of the e-invoicing processes, as well as what taxpayers are in and out of scope and the document types that must be reported.

The published materials do not introduce any changes to the current system. Instead, they serve as an educational source aimed to help businesses better understand their obligations by getting insights into how the E-Invoicing system operates.

Additionally, earlier on 27 November 2024 the GSTN published an Advisory No. 553 document on the authorized B2B e-invoice verification apps, to ensure that taxpayers have up-to date details regarding the approved apps. These mobile apps will allow buyers to verify the authenticity of an issued invoice, by scanning the respective QR code. This will simplify the invoice verification process, making it convenient for the buyers to verify their documents.

On 5 November 2024, the Goods and Services Tax Authority (GSTN) in India announced that taxable persons with annual aggregate turnover (AATO) INR 10 crores and above (ca. EUR 110 000) will have a 30-day window to report e-invoices as of 1 April 2025.

The IRP portal passes validations that prevent taxpayers from reporting electronic invoices surpassing 30 days. For instance, an invoice with a date equivalent to 1 April 2025 will not be allowed to be reported after 30 April 2025.

The GSTN clarifies in the announcement that this new requirement applies to all document types: invoices, credit notes, and debit notes.

The Goods and Services Tax Network (GSTN) will introduce a new Invoice Management System (IMS) on the GST portal starting 1 October 2024. This system will help make Input Tax Credit (ITC) claims easier by allowing taxpayers to accept, reject, or keep invoices pending for later review. Both regular taxpayers and those using the Quarterly Return Monthly Payment (QRMP) scheme will benefit from this feature.

The main benefits of the IMS include making it easier to fix invoice mistakes between suppliers and buyers, as well as ensuring more explicit ITC claims. If an invoice is accepted, it will automatically appear in the taxpayer's GSTR-2B and GSTR-3B forms. The rejected records will appear under the "ITC Rejected" section of the respective GSTR-2B, which will not auto-populate in FORM GSTR 3B.

Other features include automatic acceptance of invoices if no action is taken and options for correcting invoices and credit notes. This system will make GST compliance more efficient, but businesses will need to carefully check their invoices to ensure correct ITC claims.

On 9 September 2024, at the GST Council’s 54^th meeting, it was recommended to roll out a B2C e-invoicing pilot in the country.

The Council’s recommendation is based on the positive results of the previous B2B e-invoicing implementation. An additional benefit raised by the council is the opportunity this will provide to the end customer, who should be able to verify the invoice reporting in the GST return.

The pilot will be implemented in selected states and sectors on a voluntary basis.