India – New E-Invoicing Deadlines Announced

Selin Adler Ring
October 15, 2020

After a roller-coaster period, full of changes and updates, India’s e-invoicing reform went live on 1 October this year. This e-invoicing reform is considered to be the second biggest tax development in the country after the introduction of Goods and Services Tax (GTS) in 2017. The Indian authorities chose to go ahead with implementing the e-invoicing reform without any further delay despite many private sector requests asking for more time to prepare. However, this situation resulted in last minute changes for taxpayers.

Early signs of success

The first weeks of the mandate seem to be more successfully executed than the pre-mandate process. This is due to the back-end clearance system of the Invoice Registration Portal (IRP) functioning quite well. According to local news, the e-invoicing uptake has been a success and so far 6.95 million invoices have been cleared through the IRP within the first week of the mandate.

Scope of mandate widened

These early signs of success have given the authorities confidence to announce new deadlines for taxpayers who are currently not in scope of the mandate. The Indian Finance Secretary announced last Friday (9 October) that businesses with a threshold limit of 100 Cr. rupees or more will have access to the IRP from 1 January 2021. And by 1 April 2021, all taxpayers will have access. Furthermore, the e-invoicing mechanism will soon replace the existing e-way bill system according to the Secretary.

Even though these statements seem realistic and in line with the ambitious approach demonstrated by Indian officials so far, there is to-date no official legal action taken by the government to turn the announced dates into legally binding requirements. However, if past actions tell us anything, it’s that it’s just a matter of time.

It’s also unclear from the Secretary’s statement whether it will be mandatory for the indicated taxpayer groups to send their invoices to the IRP by the given dates or merely a possibility. The following days and weeks will shed light on these topics that continue to keep taxpayers on their toes.

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 ShipCompliant
August 9, 2022
2022 Direct-to-Consumer Wine Shipping Mid-Year Report

A lot has changed in the direct-to-consumer (DtC) wine shipping channel since the January release of our Direct-to-Consumer Wine Shipping Report—changes in volume and value that have the market resembling pre-pandemic patterns. Note: The proprietary data featured in this mid-year report is compiled from an algorithm measuring total DtC shipments based on millions of anonymous […]

E-Invoicing Compliance EMEA Italy
August 9, 2022
Italian Import Documents Become Electronic

The Italian Customs Authorities recently updated their national import system by applying the new European Union Customs Data Model (EUCDM). These new changes came into effect on 9 June 2022. According to the new procedure, the old model of paper import declarations has been abolished. The import declarations are now transmitted to the Italian Customs […]

E-Invoicing Compliance EMEA India
August 4, 2022
India: B2C Invoicing QR Code Requirement

In India, the e-invoicing system has been live since 2020. Taxpayers in the scope of e-invoicing mandate must issue their invoices relating to B2B and B2G transactions through the e-invoicing system, which is a form of continuous transaction controls (CTC). However, B2C invoices are not issued through the CTC system, which means that B2C invoices […]

E-Invoicing Compliance EMEA India
August 2, 2022
India: New Taxpayers to Comply with E-invoicing Rules

As previously predicted by Sovos, the threshold for implementing mandatory e-invoicing has been lowered by the Indian authorities. According to the Central Board of Indirect Taxes and Customs Notification No. 17/2022 – Central Tax, from 1 October 2022 compliance with the e-invoicing rules will be mandatory for taxpayers with an annual threshold of 10 Cr. […]

Asia Pacific E-Invoicing Compliance EMEA
August 1, 2022
eGUI: Taiwan’s approach to electronic invoicing

Since 1 January 2020 foreign electronic service providers must issue cloud invoices, a type of e-invoice, for sales of electronic services to individual buyers in Taiwan. Alongside this, Taiwan’s local tax authorities have been introducing incentives for domestic taxpayers to implement e-invoicing despite this not being a mandatory requirement. Before diving into the details of the […]