The e-invoicing scheme, that covers all sales other than those at the retail level, is a reporting requirement of transactions to designated portals meant to improve compliance. The data so reported at the time of the transaction also helps in auto-population of tax returns and brings efficiency and accuracy in reporting besides helping to reduce disputes.

Shashank Priya, member (GST) in the Central Board of Indirect Taxes and Customs (CBIC), said at a conference organized by industry body Ficci that the game changing step of introducing e-invoicing in 2020 will be expanded in August.

E-invoicing was first introduced on 1 October 2020 for businesses with sales more than ₹50 crores and the threshold was gradually lowered and stands at ₹10 crore as of now. "From 1 August, e-invoicing will become compulsory for businesses with sales up to ₹5 crore. That is a game changer," said Shashank Priya.

E-invoicing helps in automating accounting, the data gets auto populated in GST returns and facilitates trade, explained the official. "We are not following a Big Bang approach. We continue to incrementally improve it (the GST system). We bring the changes in a calibrated manner," explained Priya.

A separate scheme of facilitating e-commerce for small businesses will be rolled out from October.

At present, GST registration is compulsory for sales through e-commerce platforms irrespective of the turnover of the supplier, unlike in the case of offline traders, who do not require GST registration for up to ₹4 million.

"As you would be aware, we are also looking at making life simpler for some of the smaller taxpayers for supplying through ecommerce operators, with certain safeguards. Now we are proposing to allow, from October, those who are within the threshold of GST registration, to do intra-state supply without compulsorily getting registered," said Shashank Priya, adding that the move is a step in facilitating trade. "We are hoping to get this started from 1 October, 2023," he said. 

Businesses in the composition scheme that file file tax returns quarterly are also likely to be included in this scheme. There, however, will be safeguards to make sure the scheme is not abused.

Priya also said that the government was examining how to further step-up compliance, using information technology. The administration and tax payers have to work collectively on this, he said. 

Meanwhile, as part of the ongoing drive against fake GST registrations, authorities have detected tax evasion of about ₹13,900 crore and have also blocked wrongfully taken input tax credit of ₹1,430 crore, he said.