India Expands Taxpayer Scope for CTC Invoicing

Selin Adler Ring
November 11, 2020

As expected, and previously announced by the Secretary of Finance in India, the Central Board of Indirect Taxes and Customs (CBIC) has now formally issued a Notification stating that e-invoicing will become mandatory for taxpayers with a turnover of 100 Cr. rupees or more from 1 January 2021.

Mandate scope expanded

On 30 July 2020, the CBIC changed the threshold for the mandatory e-invoicing from 100 Cr rupees to 500 Cr. This was largely due to the government being cautious to ensure the technical stability and performance of the e-invoicing platform because taxpayers with a threshold of 100 Cr. rupees had already been testing their systems as part of the voluntary period that started in February 2020. Even though certain taxpayers were removed from the scope through this change in July, it was expected that the excluded taxpayers would once again be included in the scope once the e-invoicing system had proven to be stable over a certain period of time.

After the successful initial kick-off, the Indian authorities have now expanded the scope of the mandate to cover those taxpayers that were removed from the initial scope. 1 January 2021 is now the big day for those meeting or exceeding the threshold of 100 Cr. rupees.

Looking ahead

With these latest developments, it’s inevitable that India’s continuous transaction controls invoicing system will be expanded further and become mandatory for more taxpayers fairly soon. Furthermore, the Secretary of Finance hinted about the next deadline being 1 April 2021 for all taxpayers in the country. Even though this deadline appears ambitious, the path that India is following is ermined and therefore it’s likely this will happen.

Take Action

Sovos has more than a decade of experience keeping clients up to date with e-invoicing mandates all over the world.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.


Selin Adler Ring

Selin is Regulatory Counsel at Sovos. Based in Stockholm and originally from Turkey, Selin’s background is in corporate and commercial law, and currently specializes in global e-invoicing compliance. Selin earned a Law degree in her home country and has a master’s degree in Law and Economics. She speaks Russian, Arabic, English and Turkish.
Share This Post
Share on facebook
Share on twitter
Share on linkedin
Share on email

North America Sales & Use Tax
May 7, 2021
How to File Sales Tax as a Multi-Level Marketing (MLM) Business

Direct selling companies and multi-level marketing (MLM) businesses have numerous complexities to consider when it comes to sales tax calculation and reporting requirements. Along with an expansive physical nexus footprint, direct sellers must know how their products and services are taxed around the country. It’s a daunting task when facing it alone.  Where are you […]

E-Invoicing Compliance EMEA Italy VAT & Fiscal Reporting
May 6, 2021
Italy: Understanding the New E-Document Legislation Requirements

In September 2020, the Agency for Digital Italy (AGID) introduced new requirements for the creation and preservation of electronic documents, which will be enforced from 7 June 2021. This blog discusses the requirements and how they affect the issuance and storage of e-invoices. Electronic Documents in Italy The AGID is responsible for the Italian digital […]

North America Sales & Use Tax
May 6, 2021
What to Expect with New Sales Tax Software Implementation

Change is rarely easy, but when it comes to implementing new sales tax software it doesn’t have to be a constant struggle. Organizations want to know that the implementation process includes hands-on assistance and a timeline that makes sense – for all parties involved.  Our Sovos implementation is designed to deliver value quickly and to […]

North America Unclaimed Property
May 6, 2021
New York Unclaimed Property Self-Directed Compliance Program

Continuing the trend in 2021, New York unclaimed property recently introduced the NY Self-Directed Compliance Program  geared towards identifying both non-reporters and companies that reported in 2021, but failed to report property types expected to be seen. Due to negative economic impact resulting from COVID-19, Sovos’ consulting, reporting and regulatory teams have been preparing for […]

May 5, 2021
What’s on the horizon for Insurance Premium Tax in Europe?

Europe has seen relatively few changes to insurance premium tax (IPT) rates recently. The most notable recent change was the 33% increase in IPT rate in Spain (up from 6% to 8%) at the beginning of 2021. Brexit became official on 1 January 2021, following the end of the transition period. This means UK based […]