The Indian GST Council have revised their plan to make it mandatory for companies to e-invoice from April 2020. E-invoicing via their Invoice Registration Portal becomes available voluntarily from January 2020, and then will become mandatory for B2B and B2G transactions for large and mid-sized taxpayers i.e. companies with a yearly revenue of 100 crore INR or more.

The original article was published November 26 2019.

New e-invoicing proposal in India

In the latest e-invoicing news out of India, the Indian GST Council has abandoned the implementation of Peppol and announced a new initiative proposed to take effect January 1st. After consulting with relevant institutions including the Institute of Chartered Accountants of India (ICAI), the Indian GST Council has published a proposal describing the objectives and characteristics of the new e-invoicing model.

What this means for the taxpayer

The proposed Indian e-invoicing model requires businesses to generate e-invoices on their internal systems, as opposed to generating them from a central portal of the tax authority. Taxpayers will report the generated invoice to the Invoice Registration Portal (IRP) of GST. The IRP will be responsible for generating or, if already generated by the taxpayer, validating the unique Invoice Reference Number (IRN) by adding a QR code that contains the major parameters of the invoice. The digitally-signed e-invoice will be shared with the GST system and the e-way bill system. Finally, the invoice fill will be returned to the seller along with the newly generated IRN and QR code. The invoice will be sent to both the buyer and seller mail IDs that are provided in the invoice.

The Council’s main objectives are to reduce tax evasion, achieve higher efficiency in tax administration and to provide better taxpayer services. The proposal emphasizes the important role that e-invoicing standards, machine readability and uniform interpretation have in meeting these objectives.

Pagero Support

No explicit rollout plan has been published, but the proposed initiative is likely to be executed in a phased manner starting 1 January 2020. This means Indian businesses can test sending e-invoices on the new platform in less than a month, before it becomes made compulsory Pagero is keeping a close eye on developments in order to support customers and extend its global e-invoicing solutions to India.

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