India

Provinces

General

Provinces

General

About

General

About

General

Managed by the Goods and Services Tax Network (GSTN). Centralized Invoice Registration Portal (IRP) validates and issues e-invoices. Aims to simplify GST compliance, reduce tax evasion, and improve transparency.

Implementation Timeline

Date	Requirement	Details
October 1, 2020	Phase 1: Large Enterprises	Mandatory for businesses with an aggregate turnover exceeding 500 crore (approximately €60 million)
January 1, 2021	Phase 2: Medium Enterprises	Extended to businesses with an aggregate turnover exceeding 100 crore (approximately €12 million)
April 1, 2021	Phase 3: Broader Scope	Businesses with an aggregate turnover exceeding 50 crore (approximately €6 million) were included
April 1, 2022	Phase 4: SMEs	Mandatory for businesses with an aggregate turnover exceeding 20 crore (approximately €2.4 million)
October 1, 2022	Phase 5: Micro Businesses	Extended to businesses with an aggregate turnover exceeding 10 crore (approximately €1.2 million)

Who Needs E-Invoices?

E-invoicing in India is required for:

Large Enterprises: Businesses with turnover above 10 crore must comply by issuing e-invoices.
SMEs: Included in rollout based on turnover thresholds.
Exporters: Required for export transactions, ensuring integration with GST returns.
Non-resident businesses: Exempt unless GST-registered for business transactions in India.

E-Invoicing vs. E-Billing

Aspect	E-Invoicing	E-Billing
Purpose	GST compliance, mandatory by law	Internal/customer transactions
Validation	Real-time via IRP	Not validated
Format	JSON with structured GST details	Flexible, non-mandatory formats
Archiving	Required for 8 years	Optional

Key Features of India’s E-Invoicing System

India’s e-invoicing system ensures real-time validation through the Invoice Registration Portal (IRP), which includes:

Real-Time Validation: IRP validates invoices, generates an Invoice Reference Number (IRN) and a QR code.
Submission Format: JSON format for digital processing.
Archiving: E-invoices must be stored electronically for 8 years.

E-Invoicing Dataset

Buyer/Seller IDs: GSTINs for both parties.
Invoice Details: Number, date, and supply type (domestic/export).
Goods and Services: HSN codes, quantities, unit prices, and VAT details.
Taxes: CGST, SGST, or IGST amounts.
Transaction Info: Total payable amount, currency, and payment terms.
QR Code: Encodes invoice data for simplified verification.

E-Invoicing Across Transaction Types

B2B Transactions:

Mandatory validation through IRP.
Facilitates compliance and input tax credit claims.

B2C Transactions:

Not mandatory, but QR-coded invoices improve customer experience.

B2G Transactions:

Required for goods/services supplied to government entities.

Penalties for Non-Compliance

Fines: Penalties up to 10,000 (approximately €120) per invoice, along with additional late fees for filing discrepancies.
Input Tax Credit Denial: Buyers may lose eligibility for tax credits on non-compliant invoices.
Legal Risks: Repeated violations can trigger audits and reputational damage.

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