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.
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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|
|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|