India e-invoices mandatory for businesses over INR 100 crones in sales

Wednesday 11 November 2020 14:44 CET | News

The Indian government has made the electronic invoice (e-invoice) mandatory from 1 January 2021 for businesses with more than INR 100 crore in sales, down from INR 500 crores.

The government has tightened compliance norms for Goods and Services Tax (GST). The new threshold for e-invoicing, which entails real time validation of transaction details in a portal run be National Informatics Centre, was signed off on 10 November 2020, as per an official notification.

The data included in the e-invoice—details of buyers, sellers, description of item sold as per the harmonised system of nomenclature (HSN), the amount and the tax payable—will be used to pre-populate some of the tax return forms and to compute the eligible tax credit and tax liability of the parties to the transaction.

The idea of the tax administration is to ensure greater oversight on the economic activities and to ensure that these do not escape the tax net. Fake invoicing, abuse of tax credits and frauds around export incentives have been a major headache for the indirect tax administration.

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Keywords: India, e-invoice, GST, SCF, tax, invoice finance, electronic invoicing, government, e-invoicing standard
Categories: Banking & Fintech
Countries: India
This article is part of category

Banking & Fintech