India Explores e-Invoicing for the B2C Sector
The GST Council suggests introducing a pilot program for B2C e-invoicing, which may result in many advantages for retail, such as enhanced efficiency, reduced costs, and environmental sustainability.
At its 54th meeting on 9 September 2024, the GST Council proposed launching a pilot program for B2C e-invoicing in the country.
This recommendation builds on the success of the earlier B2B e-invoicing initiative. The council also highlighted the added benefit for customers, allowing them to verify invoice reporting in the GST returns. The pilot will be rolled out voluntarily in specific states and sectors.
E-invoicing situation in India
E-invoicing in India has been introduced progressively based on business turnover. It became mandatory in October 2020 for companies with a turnover of INR 500 crore. The mandate gradually expanded, with more businesses becoming subject to the requirement. E-invoicing simplifies tax compliance through a centralized Invoice Registration Portal (IRP). The timeline for e-invoicing mandates was as follows:
- October 2020: Turnover above INR 500 crore
- January 2021: Above INR 100 crore
- April 2021: Above INR 20 crore
- October 2022: Above INR 10 crore
- August 2023: Above INR 5 crore
