Indian GST Council Confirms Plan to Roll out B2B E-invoicing System

Filippa Jörnstedt
June 24, 2019

This blog was last updated on June 25, 2019

Last week, the Indian GST Council convened for its 35th session, this time chaired by the recently appointed finance minister, Nirmala Sitharaman. As expected, the topic of a nationwide mandatory B2B e-invoicing system was on the agenda, and the GST council confirmed two important principles:

Scope: The e-invoicing system will cover only B2B transactions to begin with.

Effective date: E-invoicing will become mandatory in stages; the first phase will begin on 1 January 2020 on a voluntary basis. It is yet unknown if there are any incentives tied to the first optional stage or when the subsequent stages will take effect.

Genuine political will behind e-invoicing

While both clarifications are welcome and important, there is nothing to say that they cannot be amended as the e-invoicing project and the related framework mature. If anything, the most interesting takeaway is that the GST Council is repeatedly confirming the ambition to implement a mandatory e-invoicing system in line with the directives that were provided to the exploratory committee on the matter back in April. This tells us that there is genuine political will behind this initiative and that regulation is likely to appear in the near future.  

The Indian government is set to present next year’s budget in July, and if it follows the Italian example, we might be able to expect the legal framework on mandatory B2B e-invoicing to be published in conjunction with the state budget law.

Take Action

Learn how Sovos helps companies handle e-invoicing and other mandates all over the world. To find out more about what we believe the future holds, download the Sovos eBook on trends in e-invoicing compliance

Sign up for Email Updates

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

Author

Filippa Jörnstedt

Filippa Jörnstedt is Director of Regulatory Analysis & Design at Sovos and leads Sovos regulatory research across VAT and other indirect taxes globally. Based in Stockholm, Filippa’s background is in international trust and tax regulations, focusing on global developments in tax controls such as e-invoicing, e-reporting and e-signing requirements. Fluent in English, Italian, French, Romanian and her native tongue Swedish, Filippa earned her degree in Law from Lund University in Sweden.
Share this post

North America Sales & Use Tax
February 6, 2025
The Tariff and Sales Tax Mishmash – Untying the Mess

This blog was last updated on February 6, 2025 Talk of tariffs dominates the current news cycle with some commentators suggesting that tariffs will spell disaster for our economy while others say the exact opposite. We’ve seen the stock market sometimes fluctuate as tariffs are announced but later suspended, leaving us to wonder whether an […]

retailer dtc wine shipping
North America ShipCompliant
February 6, 2025
Retailer DtC Wine Shipping: The Time Has Come

This blog was last updated on February 6, 2025 By Tom Wark, Executive Director, National Association of Wine Retailers We are often reminded by the media and those in the wine industry—as well as by wine enthusiasts—that the three-tier system of alcohol distribution in most states hinders consumer access to the expansive number of wines […]

Montana 1099-DA
North America Tax Information Reporting
February 5, 2025
State Filing Alert: Montana’s New 1099-DA Requirements for Crypto Brokers

This blog was last updated on February 5, 2025 Reporting digital asset transactions on Form 1099-DA just got a little more complicated. For 2025 transactions, crypto brokers that file Form 1099-DA with the IRS will be required to file the 1099-DA with the State of Montana. This makes Montana the first state to introduce a […]

North America ShipCompliant
January 23, 2025
DtC Wine Shipping in 2024: A Year-in-Review

This blog was last updated on January 28, 2025 The direct-to-consumer (DtC) wine shipping channel faced a storm of challenges in 2024, navigating some of the toughest market conditions in over a decade. As inflation tightened wallets and consumer behaviors shifted, the industry recorded its steepest declines in shipment volume and value since the inception […]

Form 1099-DA Crypto Transactions
North America Tax Information Reporting
January 21, 2025
What is Form 1099-DA and How Does it Impact Crypto Transactions?

This blog was last updated on January 24, 2025 The IRS has released Form 1099-DA and its accompanying instructions for filing for TY 2025. Form 1099-DA is the newest IRS information return, designed for reporting digital asset proceeds from broker transactions and is required to be filed by brokers managing digital assets such as NFTs […]