India

Release of FAQs on the new invoice registration portal

The GSTN (Goods and Services Tax Network) has published an FAQ on the recently introduced Invoice Registration Portals (IRPs).  

The FAQ contains information on reporting e-Invoices, validating IRNs, as well as how to access the portals offline. You can access the full FAQ here for more details.  

GSTN provides guidance on the E-Invoice Verifier App  The Goods and Service Tax Network ("GSTN") issued guidance regarding the E-Invoice Verifier App on 8 June 2023. With this App, e-invoice details can be verified and checked.   The E-Invoice Verifier App offers the following features and benefits: 

• QR code verification: App users can scan QR codes on e-invoices to authenticate the embedded value, which ensures the invoice is accurate and authentic; 

• This app supports the verification of e-invoices reported across all six IRPs; 

• No login required: Users don't need to login to use the app, scan invoices, or access available information. 

The following link (see below) provides more details about the application: https://www.gst.gov.in/newsandupdates/read/588. 

E-Invoicing threshold reduced to ₹5 from August 1st  2023 The GST Council has recently issued a notification that mandates e-invoicing for all businesses with turnovers exceeding Rs 5 crore ($608,302) from 1 August 2023. As a result, GST-registered companies that reach this threshold must integrate their systems and clear invoices via the government portal before sharing them with their customers. Tungsten has supported the e-invoicing mandate since its introduction in 2020 and is prepared to accommodate this new threshold change.

Postpones the implementation of time limit on reporting e-Invoices We mentioned in our previous blog about GSTN's introduction of the 7-day period for reporting invoices for electronic invoicing. Originally scheduled to start on 01 May 2023, the introduction has been delayed by 3 months by the government. The new date for implementing e-invoice time limits will be shared by GSTN once it has been determined.

New time limit to report e-invoices to the IRP The Indian government requires mandatory e-invoicing for taxpayers with an annual aggregate turnover (AATO) above Rs 10 crore for both B2B and B2G invoices. Currently, there is no restriction on when e-invoices should be reported to the IRP. E-invoices are typically generated in real-time by large enterprises in India, while smaller businesses may consolidate and generate e-invoices in bulk at a later time.  GSTN's latest advisory suggests that this may change. According to the advisory, taxpayers with an annual aggregate turnover above Rs. 100 crores will need to report the e-invoice within seven days of issuance. This restriction will only apply to invoices, and there will be no time restriction on reporting debit/credit notes. It is proposed to implement the new seven-day limit on 1 May 2023 

Enablement of voluntary e-invoicing Currently, it is compulsory for GST registered businesses in India whose annual turnover exceeds RS 10 crores to clear their invoices with the government portal (Invoice Registration Portal) before sharing the invoice with their buyers.   According to GST e-Invoice system's notification published on 17th March 2023, businesses not covered by the mandate can now issue e-invoices voluntarily for FY 2022-23 

E-Invoice System will no longer accept 4-digit HSN codes In accordance with Notification No.78/2020 - Central Tax dated 15th October 2020, taxpayers must provide 6-digit HSN Codes for their outward supplies having AATO(Annual Aggregate Turnover) more than Rs 5 Crores. The Indian e-Invoice System will not accept 4-digit HSN codes in a few weeks' time. Taxpayers are advised to adjust their systems to report 6-digit HSN codes to the e-Invoice Portal and comply with the upcoming notification.

Taxpayers may verify all the HSN codes in the ( https://einvoice1.gst.gov.in ) portal under Search->Master->HSN Codes and also test in the sandbox system ( https://einv-apisandbox.nic.in ). It is possible to raise a ticket at Helpdesk in case the 6 digit HSN code is not available.

Introductions of New e-Invoice Portal GSTN has released four new IRPs (Invoice Reporting Portals) for reporting e-invoices in addition to NIC-IRP. The beta version of the new e-Invoice portal has been launched, which allows taxpayers to check enablement status, search for IRNs, and access all IRP portals. GSTIN credentials can be used to log into the new e-invoice portal for select services relating to GSTIN profiles.     The urls of IRPs sites authorised to generate IRNs are:  

• einvoice1.gst.gov.in  
• einvoice3.gst.gov.in  
• einvoice4.gst.gov.in 
• einvoice6.gst.gov.in  

For more information, please access here to see the official advisory issues by GSTN.   

E-invoicing threshold cut to 5 Crores will not yet apply in January 2023 In our previous release, we mentioned that e-invoicing would become mandatory for taxpayers with annual turnover exceeding Rs.5 crore in India, starting from 1st January 2023.   This was, however, clarified by the Central Board of Indirect Taxes and Customs (CBIC) on 26th  December 2022, that “There is no proposal before the Government, at present, to reduce this threshold limit to Rs 5 crore with effect from 01.01.2023, as no such recommendation has been made by GST Council as yet".   Tungsten Network has been offering compliant e-invoicing services in India since e-invoicing was introduced in 2019, and we will continue to monitor e-invoicing development in India.  

E-Invoicing threshold reduced to ₹5 from January 2023 The GST Council has mandated e-invoicing for all businesses with turnovers exceeding Rs 5 crore ($630,000) starting from 1 January 2023. This means that All GST registered businesses that meet this threshold must integrate their systems and clear their invoices with the government portal before sharing with their buyers.   Accordingly, the Council has requested technology providers to ensure that the portal is ready by the end of December to accommodate the increased volumes of transactions.   Tungsten has supported the e-invoicing mandate since its introduction in 2020 and is prepared to accommodate this new threshold change.       

E-invoicing threshold to be further lowered from 1st October 2022 With the recent issuance of Notification No.17 2022, the threshold for mandatory e-invoicing will be further lowered to ₹10 crore (from ₹20 crore) on October 1, 2022. From this date, GST registered businesses with annual turnover of ₹10 crore or more must issue e-invoices for B2B transactions. Further, Vivek Johri, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC), has made the following statement: "We started with a very high threshold and soon we are going to have all taxpayers with an annual turnover of more than ₹5 crore having to generate e-invoices for their B2B part of business.” According to Mr Johri, the ₹5 crore threshold will likely to be introduced in the course of 2023. The India government has implemented e-invoicing in a phased manner ensuring minimum burden on the taxpayer community, the recent measures on threshold cuts will improve tax compliance and move closer to making e-invoicing mandatory for all GST taxpayers eventually. Tungsten has been supporting the e-invoicing mandate since its introduction in 2020 and is prepared to meet this new threshold requirement.

GST collections hit an all-time high of ₹ 1.42 lakh crore in March 2022 In March 2022, the goods and services tax (GST) revenue collected was ₹1.42 lakh crore ($18.93Bn), the highest amount since the new taxation system was implemented in India. Ministry of finance said in a statement that GST revenues for March 2022 are 15% higher than the same month last year and 46% higher than March 2020. These results show how powerful Continuous Transaction Controls (CTC) can be from a tax collection perspective. Together with economic recovery, anti-evasion activities, especially action against fake billers have contributed to the enhanced GST, said the government.

Lower threshold for e-invoicing from 1st April 2022 The Central Board of Indirect Taxes & Customs (CBIC) of India recently issued a notification (01/2022) lowering the threshold for mandatory e-invoicing under Goods and Services Tax (GST). As of present, e-invoicing is mandated for all taxpayers whose annual revenue is ₹50 crore or above. From 1st April 2022, the revenue threshold for mandatory e-invoicing will be reduced to ₹20 crore. By extending the scope of e-invoicing, the government is expected to enhance tax compliance among small businesses in the country.

Government departments and local authorities exempt from e-invoicing

On 1st June 2021, the Indian Government released a notification stating that government departments and local authorities are exempt from the e-invoicing mandate being implemented.

Click here to learn more about the Indian mandate.

Compliance relief offered in light of Covid-19 pandemic

In light of the severity of the Covid-10 pandemic in India, the Central Board of Indirect Taxes and Customs (CBIC) has introduced several compliance reliefs for taxpayers.

These include the following:

• There will be no late fees for delayed filing of GSTR-3B of March/April, up to 15 days and 30 days from the original due date for Taxpayers with turnover more than INR 5 Crores and up to INR 5 Crores respectively. In addition to this, for the quarter ending 31 March 2021, no late fees will be charged if GSTR-3B is filed within 30 days from the original due date.
• The due date to file GSTR-4 is extended to 31 May 2021.
• The due date to file ITC-04 is extended to 31 May 2021 (for the quarter: January-March 2021).
• The due date to file GSTR-1 for April 2021 is extended to 26 May 2021 and for IFF the due date is extended to 28 May 2021.
• Due date for all other proceedings, asset order, etc., whose last date of completion falls between 15 April to 30 May is extended to 31 May 2021.

Click here to learn more about the Indian mandate.

India extends the scope of the invoice reporting mandate from April 1, 2021

The Indian Central Board of Indirect Taxes and Customs (CBIC) has changed the revenue threshold that determines whether companies are required to report invoice data to the Invoice Registration Portal (IRP).

Via Notification No. 05/2021–Central Tax, the Central Board has lowered the threshold to Rs 50 Cr ($6.8m). The revenue threshold applies to aggregated revenues on PAN-level (Permanent Account Number) and will therefore apply to all GSTINs under the Permanent Account Number.

The change will be effective from April 1, 2021.

The announcement has been published in the Gazette of India on 8 March 2021: http://egazette.nic.in/WriteReadData/2021/225713.pdf

Click here to learn more about the Indian mandate.

India retrasa la normativa sobre facturación

El gobierno indio anuncia que su normativa sobre facturación de finales de 2019 necesitará posponer su fecha de entrada en vigor que inicialmente era del 1 de abril de 2020. En la actualidad informan de que la puesta en marcha se retrasará hasta el 1 de octubre de 2020.

Click here to learn more about the Indian mandate.

Información adicional sobre la normativa de India

A partir del 1 de Octubre de 2020, todas las empresas con una facturación superior a 100 Rs.estarán obligadas a utilizar el portal de facturación IRP.

Click here to learn more about the Indian mandate.

India confirma la entrada en vigor de la facturación electrónica a partir de Octubre de 2020

Las autoridades de India han confirmado que el portal de registro de facturación (IRP, por sus siglas en inglés) entrará en funcionamiento durante 2020. Los contribuyentes de mediano y gran tamaño deberán utilizar dicho portal a partir de Octubre de 2020.

Click here to learn more about the Indian mandate.