Further drop in annual sales threshold for India GST payers to adopt electronic invoicing
The government has approved a new cut in the annual sales threshold to ₹10 crore (approx.$120 million per annum) for taxpayers mandated to adopt Indian e-invoicing. This will come into effect from 1 October 2022. This will help further identify fake ITC claims, estimated to cost the country ₹50,000 crore per annum.
This is the fifth cut in the threshold since India e-invoicing was phased in from October 2020. There are also proposals to half again the e-invoice threshold to 5 crore in January 2023.
Current 20 Crore threshold since 1 April 2022
The Indian Central Board of Indirect Taxes and Customs lowered the annual sales threshold for mandatory GST e-invoices. With effect since 1 April 2022, e-invoicing is mandatory for all taxpayers that have aggregate turnover exceeding INR200 million (₹20 crore). The last threshold, Rs 50 Crores, was set on 1 April 2021.
This brought in at least 180,000 new taxpayers into the e-invoicing system.
Check VAT Calc’s global live VAT invoice transaction and e-invoice reporting tracker to see where else real-time submissions of invoices is being implemented.
India B2B e-invoice rollout Oct 2020 to Apr 2021
The new electronic invoicing regime was introduced on 1 October 2021. The annual sales registration threshold has now been lowered from Rs 50 crore from 1 April 2021. This will affect over 48,000 Goods and Services Tax registered enterprises. These taxpayers account for almost 50% of all GST collections. Testing and registrations for the system began in February 2020.
The following businesses are exempt from the requirement: financial services; located special economic zone; passenger transport services and goods transport brokers.
Under the REAP program, enhancement of GSTR 2A – purchase related tax return usually auto populated when taxpayer files GSTR 1 for outward supplies – and linking of GSTR 1 to GSTR 3B, which is summary return for sales and input tax credit, to create a new form GSTR 2B has been envisaged.
Indian GST was introduced in 2017.
Preparing VAT or GST returns can be challenging. VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditorintegrated tools.
Asia Pacific e-invoicing
| Country | Date | Comments (click for details) |
| Australia | Jul 2023 | PEPPOL-based e-invoicing with no govt intervention B2B |
| China | Jan 2023 | Special e-fapiao VAT invoice being piloted with 2023 full implementation |
| India | Oct 2020 | B2B pre-clearance with separate B2C; completed Apr 2021 |
| Indonesia | Jul 2015 | e-Factur Pajak electronic invoicing |
| Japan | Oct 2023 | Tax qualified invoices |
| Kazakhstan | Jan 2017 | e-invoicing IS ESF |
| Kyrgyzstan | Jan 2023 | Mandatory e-invoicing for goods |
| Malaysia | 2024 | e-invoicing pre-clearance |
| Mauritius | 2023 | e-invoicing System with digital transaction reporting |
| New Zealand | Mar 2022 | B2G PEPPOL-based e-invoicing |
| Philippines | Jul 2022 | 2022 pilot of e-invoices; to follow South Korea model |
| Singapore | TBC | Mandatory B2G e-invoicing on InvoiceNow |
| South Korea | 2011 | Near real-time invoice reporting |
| Taiwan | 2017 | Electronic GUI invoices; non-residents since 2020 |
| Thailand | 2018 | E-invoice reporting where adopted |
| Vietnam | Nov 2021 | Pre-clearance B2B verification code e-invoice |
