With almost two years into the GST implementation, the government is now focusing on anti-evasion measures to support revenue and increase compliance. As there are over 1.21 crore registered businesses under the GST, of which 20 lakh are under the composition scheme.
To look into the feasibility of introducing e-invoice system, a13-member officers’ committee comprising-
- Central and State tax officials, and
- GST Network chief executive officer,
is set up. They will look at streamline generation of invoices and easing compliance burden.
Electronic invoice are soon to launch, in September, by the revenue department. The proposed e-invoice is part of the exercise to check GST evasion.
The GST Council has set up two sub-groups to look into the policy and technical aspects, such as turnover threshold and mode of generation, for e-invoice generation by businesses.
The sub-group on policy issues for e-invoice would recommend legal aspects and business process including invoice format, threshold turnover for invoice generation from the portal and immediate steps for ‘B2B’ supplies with a high threshold turnover. The sub-group on policy issues would also suggest some “immediate steps” to check fake invoices in case of business-to-business (B2B) supplies with a high threshold turnover and also recommend a improvement for sectors like banking, telecom, tentative timeline for execution and phase-wise implementation.
The sub-group set up by GST Council on technical issues would suggest mode of generation, like app-based or mobile or SMS or offline and online, data security and system integration.
Depending on the success of the project in the B2B segment, the revenue department would look at extending it to business-to-consumer (B2C) sales, especially in sectors where the probability of tax evasion is high.