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.

Timeline

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.

Author

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 Unclaimed Property
June 23, 2021
Florida Contractor Assisted Self-Audit Program (CASA)

Put your Delaware Voluntary Disclosure Agreement (DE VDA) to Work with Florida CASA The Florida Department of Financial Services recently announced its participation in the Faegre Drinker, Biddle & Reath LLP (FDBR) Contractor Assisted Self-Audit Program (CASA) that seeks to increase the utilization of the work efforts organizations invest in the Delaware Voluntary Disclosure Agreement […]

North America ShipCompliant
June 22, 2021
How to Label Direct-to-Consumer (DtC)-Shipped Alcohol Boxes

When it comes to direct-to-consumer (DtC)-shipped alcohol boxes, there are requirements from all destination states to label all such boxes to announce that they contain alcohol and must be signed for by someone 21+. This has been the case for DtC wine shipments, and is also true for DtC beer shipments and DtC spirit shipments.  […]

North America ShipCompliant
June 21, 2021
The Data: Wine DtC Shipments and Off-Premise Retail (May 2021 Special Report)

Wine direct-to-consumer (DtC) shipments continue to shift as the marketplace works to regain stability after a difficult economic year. Staying mindful of marketplace data will ensure the industry can properly adjust to any ebbs and flows, helping wine producers, retailers and consumers alike.  Nielsen is collaborating with Wines Vines Analytics and Sovos ShipCompliant to provide […]

EMEA Tax Compliance VAT & Fiscal Reporting
June 20, 2021
Post-Brexit VAT Compliance: Your Questions Answered

Six months after Brexit there’s still plenty of confusion. Our VAT Managed Services and Consultancy teams continue to get lots of questions. So here are answers to some of the more common VAT compliance concerns post-Brexit. How does postponed VAT accounting work? Since Brexit, the UK has changed the way import VAT is accounted for. […]

North America ShipCompliant
June 18, 2021
How to Streamline Your Wine Shipping With UPS and FedEx

Wineries that use FedEx or UPS to print shipping labels for beverage alcohol packages can integrate with ShipCompliant to streamline the fulfillment process. This means: No more typing addresses to print labels One click can pull all shipment information from ShipCompliant into FedEx or UPS –  your labels are ready to print Tracking numbers sync […]