Electronic Invoicing is an electronic authentication mechanism under GST.
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E-invoicing has been the biggest and one of the most talked-about changes when it comes to GST in 2020. Invoicing practices have been quite industry specific. Despite the proprietary ways of preparing invoices, unified approach of e-invoicing was taken in good spirit by the overall taxpayers.
The first committee was set-up in May 2019 to discuss the usability of E-Invoicing and prepare an e-invoicing implementation plan for India considering global implementations.
Since the committee gave its recommendations, several drafts of E-Invoicing Specifications were issued and finally the E-Invoice Schema was released in January 2020.
E-Invoicing is increasingly mandated by governments across the globe particularly due to GST evasion.
Tax leakage and fraud using fake invoices have been an issue the government is trying to fight even before the GST era. E-invoicing in India is proposed to put an end to this by mandating authorization of every invoice from the government portal. Real time invoice reporting discourages subsequent fraudulent changes/adjustments.