On 7 June 2019, Tungsten’s Head of Country Compliance was in Delhi to meet with the CEO of India’s Goods and Services Tax Network (GSTN) and discuss best practice and lessons learnt from e-invoicing mandates elsewhere in the world.
This follows the announcement on 6 May 2019 that the Indian government have advanced their plans to move to a transaction clearance or real-time capture model for all domestic B2B invoices, in a bid to eliminate invoice fraud and reduce tax leakage in the country.
GSTN is on the committee of the GST Council that is looking into the overall feasibility and timelines and issues connected to e-invoicing, including impact on specific industries (banking, telecoms and FMCG). On 21 June, the GST council met, presided over by the new Minister of Finance, and decided to introduce an electronic invoicing system for B2B transactions. The introduction will be via a phased approach as already indicated in our May update.
Phase 1 of the electronic invoicing is proposed to be voluntary and shall be rolled out as from January 2020. Tungsten will remain close to the GSTN to understand the details of the programme and its impact on the network and future developments.
India is one of the fastest growing economies in the world and Tungsten Network has long been committed to accelerating global trade and helping businesses as they work with suppliers in India.
Our “passage to India” began several years ago when we started lobbying the Indian Government for clarification around whether digital signatures were legally permitted to prove the authenticity of invoices.
Read our article discussing how to adapt to GST in India and download this report today.