Government to introduce e-invoice system under GST, says report

After the successful implementation of the e-way bill system, the finance ministry is looking to implement an electronic invoice mechanism or e-invoicing for the Goods and Services Tax (GST) portal for its customers, reported The Economic Times quoting sources.

In the initial phase, the service will only be available to large companies which will register every transaction on the GST network, the daily said.

E-invoicing, which will be implemented to curb tax evasion, will allow the government to capture transactions on a real-time basis, the report said, adding that, for companies, it will make compliance, as well as, getting their tax credits, easier.

"It is being examined … We are looking at if bigger companies could be brought in to begin with,” a government official told the daily.

A committee appointed by the GST council will help examine issues connected to e-invoicing, including optional treatment of sectors such as banking and telecom as also a tentative timeline for execution, the report added.