1. Home
  2. A solution to India’s new GST compliance challenges


How to be compliant with E-invoicing and new GST system in India with ONESOURCE

As the GST Council in India has decided to introduce E-invoicing for reporting business to business (B2B) from April 2020 onwards for registered business with a turnover of INR 100 crore, it has become a major game changer for the GST compliance process.

The main key takeaways of e-invoicing in India are:

By generating an e-invoice, the reporting of the B2B invoices gets auto-populated in the returns of the seller (ANX-1) and the buyer (ANX-2).

  • The e-invoicing functionality enables generation of e-way bill.
  • E-invoice can be created by taxpayers on their own Billing/ERP system.
  • The e-invoices are sent to Invoice Registration portal (IRP), whereby a QR code will be generated containing the Invoice Reference Number (IRN)

With the introduction of E-invoicing combined with the new return system from April 2020 onwards in the India GST landscape, the GST authorities aims to automate the compliance process and reduce the number of frauds. But it comes with the below challenges:

  • Continuous reconciliation of the sales and the purchase data at each stage of the process of filing returns is inevitable for accurate reporting.
  • In case of mismatches from the reconciliations, an efficient and effective communication system with the vendors is critical to ensure eligibility of input tax credit.
  • Ensuring continuous uploading of all types of Invoices to the IRP and the GST portal.
  • Integrating the IRP and the GST portal with the ERP is critical to ensure compliance with the standards of the tax authorities’ portals.

Thomson Reuters ONESOURCE can be the one stop solution to address the above challenges in an automated manner with their powerful data reconciliation, adjustment and reporting capabilities- reducing the effort and risk involved in preparing the GST returns.

Apart from the compliance requirements, you will also have access to versatile dashboards to provide an analytical view of all sales/purchase data.