Invoicing and Tax regulation in India
Invoicing Regulation in India
In India, invoicing regulations are mandatory for every registered business as stated in the Goods and Services Tax (GST) Act. For every sale of goods or services, businesses must issue a detailed invoice bearing information like GSTIN, address, tax rates, and others. The GST Act also includes specific requirements for b2b, b2c, and b2g transactions.
Real-time Reporting / Fiscalization in India
In India, real-time reporting or fiscalization is not mandatory. However, the Electronic Way Bill (e-Way Bill) system was introduced for the transport of goods, requiring businesses to declare their goods to the government before transport begins. This is applicable for both inter-state and intra-state movement of goods.
E-Invoicing in India
E-invoicing is a mandatory requirement in India for companies with an annual turnover exceeding INR 500 crore. The GST Network (GSTN) introduced the concept of e-invoicing where invoice data is authenticated and validated electronically by the government. This system facilitates the seamless exchange and acceptance of invoices between suppliers and buyers in a standardized format.
VAT/GST/Tax Compliance in India
For tax compliance in India, businesses must adhere to the GST law which simplifies the tax structure in the country. The GST for goods and services is divided into five tax slabs – 0%, 5%, 12%, 18%, and 28%. There are specific GST rates for different goods and services. Businesses must register for GST if their turnover exceeds INR 20 lakh (10 lakh for North-Eastern states). They must also file regular tax returns and keep detailed records of their business transactions.