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

North America Unclaimed Property
May 30, 2023
How to Set Up a Successful Unclaimed Property Program

Unclaimed property compliance can be difficult and overwhelming. Clients often ask what they should be doing to ensure they are compliant with the various laws and regulations. It isn’t easy, especially if you have multiple property types such as checks, credits or customer accounts that have the potential to become unclaimed property in multiple states. […]

North America ShipCompliant
May 30, 2023
How Hold At Locations Improve Your Customers’ Wine Delivery Experience

Direct-to-consumer shipping wine lovers enjoy the convenience of having their favorite vinos shipped to their front door. But what happens when, for whatever reason, they aren’t available to accept their wine deliveries? Whether they aren’t available during the day or they don’t have someone 21 or older available to sign for their package, these challenges […]

North America Sales & Use Tax
May 30, 2023
Identifying Sales Tax Liabilities and Why They Matter

By Steve Claflin, CLA It’s incredible that it has now been five years since the landmark Wayfair decision. It seems like just yesterday we were reading the case, alerting clients and tracking the ever-developing state guidance. Unfortunately, many companies still are not familiar with their sales tax filing obligations caused by economic nexus, or they […]

North America ShipCompliant
May 25, 2023
Out-of-State Breweries Gain Self Distribution, DtC Rights in Oregon

Under a settlement agreement, breweries located outside of Oregon now have more options for selling into the Beaver State, including direct-to-consumer (DtC) shipping and self-distribution to retailers. The settlement arose out of a lawsuit filed by a group of Washington breweries last year challenging Oregon laws that limited beer self-distribution to in-state breweries and DtC […]

EMEA VAT & Fiscal Reporting
May 24, 2023
VAT and Art: What you need to know

Significant inflation increases have impacted most of the world’s economies, with the UK still above 10% in 2023. This increase means a reduction in the purchasing power of consumers. Together with increases in the cost of raw materials, this has created uncertainty regarding growth of entire industrial departments and reduced profit margins for companies. The […]