India: e-invoice delayed to 1 October 2020
VAT News Updates
8th April 2020: On 14 March 2020, the GST council announced the implementation of e-invoicing and QR codes on invoices will be postponed for 6 months.
It was announced in 2019 that e-invoicing would become mandatory in India. The first phase of e-invoicing was to begin on 1 April 2020.
On 14 March 2020, the GST council announced the implementation of e-invoicing and QR codes on invoices will be postponed for 6 months. The new date for the introduction of mandatory e-invoicing is 1 October 2020.
The reasoning behind the 6 month delay
Below are some of the reasons that led to the 6 month delay:
- The required infrastructure was not deployed to production in time;
- Lack of voluntary adoption of the central upload service during the voluntary trial period (this began on 1 January 2020) by businesses with revenue exceeding 100 crore;
- Load testing of the system would not have been performed by 1 April 2020; and
- Businesses were left with very little time to adopt the new invoice schema.
Other decisions that were made on 14 March 2020 include:
- The deadline for the e-wallet scheme is postponed until 31 March 2021;
- The introduction of the new GST return is deferred to 1 October 2020; and
- Certain categories of taxpayers (including financial institutions, banks, insurance companies, non-banking financial institutions and passenger transportation services) are exempt from issuing e-invoices and generating QR codes.
The introduction of mandatory e-invoicing hopes to bring consistency and uniformity and to put an end to data errors and in turn, reducing tax evasion in India.
See more Taxback International Articles
16 January 2020: E-invoicing has become available voluntarily from January 2020 and will become mandatory from April 2020 for B2B transactions.
Global VAT updates relating to Covid-19
Updated 7th September 2020: Governments globally continue to alter VAT rates to support their businesses and economies.
India: GST Amendments 1st February 2019
6th February 2019: The Indian Government has made amendments to GST legislations.