Lok Sabha Question No. 678 (UNSTARRED), answered on 2023-07-24
Subject: e-Invoicing
Ministry: FINANCE
Asked by: Shrirang Appa Barne, Prataprao  Jadhav, Sambhajirao Mane Dhairyasheel, Bidyut Baran Mahato, Sanjay Sadashivrao Mandlik, Sudheer Gupta

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA

## UNSTARRED QUESTION No. 678

TO BE ANSWERED ON MONDAY, JULY 24, 2023/SRAVANA 2, 1945 (SAKA)

## E-INVOICING

678. Shri Shrirang Appa Barne:

Shri Prataprao Jadhav:

Shri Dhairyasheel Sambhajirao Mane:

Shri Bidyut Baran Mahato:

Shri Sanjay Sadashivrao Mandlik:

Shri Sudheer Gupta:

Will the Minister of FINANCE be pleased to state:-

- (a) the details of present criteria followed by the Government for e-invoicing;
- (b)  whether  the  Government  on  the  recommendations  of  GST  council  has  widened  the requirement for e-invoicing or real-time reporting of business-to-business sales;
- (c) if so, the details thereof;
- (d) the manner in which this new system is going to plug revenue leakages on account of input tax credit frauds;
- (e)  the  total  amount  of  additional  revenue  likely  to  be  generated  by  the  Government  by introducing the e-invoicing during the current fiscal year; and
- (f)  the  other  steps  taken/being  taken  by  the  Government  to  improve  tax  compliance  in  the country?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE

## (SHRI PANKAJ CHAUDHARY)

- (a) As per the present provisions, a registered person, whose annual turnover exceeds Rs 10 crore in any of the preceding financial year from 2017-18 onwards, is required to issue e-invoices in respect of the supply of goods or services or both made to a registered person (B2B), SEZs, or for exports and deemed exports.

(b) and (c) Electronic invoicing system (e-invoice) has been introduced in a phased manner as per  the  recommendations  made  by  the  GST  Council.  E-invoicing  was  made  mandatory  for supply of goods or services or both made to a registered person (B2B), SEZs, or for exports and deemed exports in respect of registered persons with turnover exceeding ₹500 crore with effect from  01.10.2020.  This  threshold  of  turnover  has  subsequently  been  revised  to  Rs.  100  crore w.e.f. 01.01.2021, to Rs. 50 crore w.e.f. 01.04.2021, to Rs. 20 crore w.e.f. 01.04.2022 and to Rs. 10 crore w.e.f. 01.10.2022. This threshold is further being reduced to Rs 5 crore with effect from 01.08.2023.

(d) E-invoice helps in easing the process of filing returns and also helps in 'invoice matching' and  assists  in  the  seamless  flow  of  input  tax  credit  across  the  supply  chain,  thereby  reducing cases of frauds and other malpractices under GST regime.

(e) No such estimates of additional revenue likely to be generated specifically on account of einvoicing can be made.

(f)  Some of the major initiatives / policy measures / reforms undertaken/ being undertaken by Government, on the recommendations of the GST Council, to improve tax compliance in the country are as follows:

- (i) To  bring  discipline  in  return  filing  and  to  promote  timely  filing  of  GSTR-3B  returns, restriction  has  been  made  on  filing  of  FORM  GSTR-1,  if  taxpayer  fails  to  furnish  the FORM GSTR-3B return for preceding tax period.
- (ii) Provision has also been made to make filing of FORM GSTR-1 mandatory before filing of FORM GSTR-3B for a tax period and also for mandating sequential filing of FORM GSTR-1.
- (iii)Amendments  have  been  made  to  limit  the  input  tax  credit  availment  to  the  extent  the details  of  such  supply  have  been  furnished  by  the  supplier  in  his  FORM  GSTR-1  and which has been made available to the taxpayer in his FORM GSTR-2B.
- (iv) To encourage  self-discipline  and  self-compliance  by  the  taxpayers,  provision  has  been made for system-based intimation of the difference in  liability  in  FORM  GSTR-1  and FORM GSTR-3B for a tax period, to the taxpayer on the common portal, for enabling the taxpayer to either pay the differential liability or explain the difference.

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