India Signals an Expansion in the Scope of E-Invoicing

Selin Adler Ring
February 28, 2021

The new Indian e-invoicing system has been live since October 2020 and it has been rolled-out in phases. The first phase started in October 2020 with taxpayers with a 500 Cr. rupees threshold or more and the second phase continued in January 2021 covering taxpayers with a threshold of 100 Cr. rupees or more.

The Indian authorities have continuously expressed their ambition of a nationwide e-invoicing solution and plans to gradually expand the scope of e-invoicing. It is therefore interesting to note that taxpayers were not allowed to implement e-invoicing voluntarily in the first two stages but instead had to wait until their market segments were identified by the authorities as ready for testing.

It was previously announced by the Finance Secretary that by 1 April 2021 all taxpayers in India would have access to e-invoicing, but it was not clear from these announcements whether the goal was to make it mandatory or simply to allow voluntary adoption of e-invoicing from April 2021.

Recent e-Invoicing Developments

The e-Invoice API Sandbox portal has been enabled for taxpayers with a turnover between 50 Cr. rupees and 100 Cr. rupees for technical testing. Given the previous practices, this development could be interpreted as an indication that a mandate is around the corner.

It was previously announced through the e-Invoice API sandbox portal that taxpayers between 100 Cr. rupees and 500 Cr. rupees were enabled for testing. This development was soon followed by a notification mandating e-invoicing for those taxpayers from January 2021. Therefore, it is expected that the Indian government will soon publish a notification that mandates e-invoicing for taxpayers with a turnover of 50 Cr. rupees or more.


Even though there are no formal statements communicated by the authorities on the timeline or on the mandate, many stakeholders are expecting 1 April 2021 to be the mandatory date to comply with the new e-invoicing process for the next segment of taxpayers. Given the previous announcements, it would not be a bombshell. However, taxpayers would be left with a very tight deadline to comply.

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

Tax Information Reporting
April 15, 2021
Managing Form 1099-NEC Reporting After Publication 1220

Form 1099-NEC changes in 2020 Since the IRS released Publication 1220, announcing that Form 1099-NEC—for nonemployee compensation—would not be included in the Combined Federal/State Filing (CF/SF) program starting tax year 2020, 37 states have implemented direct state reporting requirements for new Form 1099-NEC.  Though there are 32 states that participate in the CF/SF program, the […]

North America Unclaimed Property
April 15, 2021
Delaware Unclaimed Property VDA Notices

Delaware VDA Responses Due Monday, April 19, 2021 If you received one of the recent unclaimed property DE VDA invitations sent February 19, 2021 your response is due Monday, April 19, 2021. Holders that received an invitation and do not respond by April 19th will be referred to State Escheator for audit examination. Double check […]

North America Unclaimed Property
April 14, 2021
When Are Unclaimed Property Reports Due and Other FAQs

When are unclaimed property reports due? This is a fairly common question asked by holders that are new to the escheat reporting process, or not as well versed in the intricacies of escheatment reporting. Fortunately, Sovos has provided answers to some of the most frequently asked escheat reporting questions to help your organization survive unclaimed […]

North America Unclaimed Property
April 14, 2021
Unclaimed Property Landscape for the Life Insurance Industry

Most unclaimed property professionals are familiar with the story of Verus Analytics, LLC’s (“Verus”)[1] appearance on the contract audit “field of play” some ten years ago, as it cut a swath across the life insurance industry with audits focused on the industry’s failure to report and remit unclaimed life insurance proceeds based on the insurers […]

Brazil E-Invoicing Compliance Tax Compliance
April 13, 2021
E-invoice Data Reveals the Impact of COVID-19 on Brazil’s Economy

Increased visibility into, and control over, taxpayer financial and trade data is the key benefit highlighted by governments that have introduced continuous transaction controls (CTC) regimes. Its importance cannot be overstated. Transactional data cleared by or exchanged through a tax administration authorised platform becomes the new source of truth for tax authorities to assess the […]