E-invoicing has been a mandatory requirement for businesses in India engaged in B2B transactions since its gradual implementation commenced in October 2020, with the deadline for compliance set for April 2021. The body responsible for the supervision of the national invoicing regime in India is the Goods and Services Tax (GST) Council.
From 1 April 2022, the obligation will apply to all taxpayers with an annual turnover of Rs 20 million or more. In August 2023, it will be extended to taxpayers with an annual turnover of more than Rs 5 million.
A significant new requirement, effective from 1 April 2025, is that any company invoicing electronically in India with an annual turnover of more than Rs 10 crore will be obliged to submit invoices to the GST portal within 30 days of the invoice being issued.
In the context of B2C transactions, Indian taxpayers are obliged to generate a QR code, a requirement that applies to those with a turnover of Rs 500 million or more. Conversely, a voluntary period for B2C transactions is to be launched, with an estimated commencement date of 2026 or 2027.
How to send electronic invoices in India?
It is a prerequisite for any e-invoice project that the relevant data be transmitted to the Invoice Registration Portal (IRP) via an Application Programming Interface (API) in the JavaScript Object Notation (JSON) file format.
The IRP performs a series of basic invoice validation checks. In other words, the system completes the invoice data, checks the supplier and customs GST identification numbers (GSTINs), checks the invoice number and date, and verifies that the invoice is not a duplicate.
Subsequently, the IRP issues a distinctive invoice reference number (IRN), an electronic signature IRN and a unique Quick Response (QR) code, which is a barcode that provides a URL for e-readers to access the invoice information.
Subsequently, the invoice provider transmits the invoice and the QR code to the customer. It is incumbent upon the customer to accept the details and to agree upon the format for sharing the invoice, as this is not currently available in the IRP. In the majority of cases, this is accomplished through the use of PDF or paper invoices.
Furthermore, the invoice and QR code are transmitted to the GSTN and the National Informatics Centre (NIC) for the purpose of ensuring the accuracy of all data.
As of 1 November 2023, a 30-day deadline has been established for the uploading of e-invoices to the Invoice Registration Portal (IRP). The initial threshold for applicability was set at a turnover of over Rs 100 million.
E-Ways: electronic invoicing for goods transport
An e-way bill is an electronic invoice for the transportation of goods. It contains information such as the name of the sender, the consignee, the carrier, the point of origin of the movement of goods and their destination.
On 11 January 2024, India's national IT centre confirmed the postponement of plans to make it mandatory for taxpayers to generate e-way bills. The implementation was scheduled to commence on 1 March, but has now been postponed.
Nevertheless, it is anticipated that, in due course, all movements of goods within the country will be required to be accompanied by an electronic e-way bill report and e-invoice details in B2B and export transactions.
Furthermore, a company registered for the Goods and Services Tax (GST) is prohibited from transporting goods with a value exceeding Rs 50,000 without an e-way bill, which is generated through the registration of a movement of goods.
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