Economy

Issuing e-Invoices Under GST – May Not Be Mandatory for Banks and Telcos

In a recent development, institutions such as banks, airlines, armed forces, insurance companies, and telecom service providers may get an exemption on the mandatory issuing of e-invoices under the Goods and Services Tax (GST). Entities that have a direct, large-scale customer interaction may be exempt from filing e-invoices under GST.

The government is yet to specify the exemptions through notifications. If the idea is implemented, it is likely to benefit entities in the sectors that issue several invoices to customers directly or offer direct debit/credit facilities. Currently, banks and insurance companies are allowed to submit consolidated invoices.

Also Read: E-Comm Firms May Have to Upload E-invoices for Vendors

If the exemption is not allowed, these entities might be required to pay massive compliance costs. Starting from 1 April, companies with aggregate revenue of Rs.100 crore and above must mandatorily issue e-invoices. This is because the government recommends digital filing of invoices under the GST regime as a measure to tackle tax evasion and fraudulent claims of GST credits while increasing tax collection.

For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in

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