In a bid to radically transform the indirect tax administration system and the way business is conducted in the country, the GST Council is planning to introduce electronic invoicing under goods and services tax.
The Council has taken a number of measures, such as the introduction of electronic way (e-way) bills, to curb the menace of tax evasion.
Industry sources suggest that, the introduction of this system will enable the businesses to issue invoices, or bills, directly via the GST Network and the data will be instantly available to the authorities right away.
The GST Council has also constituted a committee to look into the possibility of e-invoicing. It will also be studying the systems in place in other countries namely South Korea and some from Latin America.
The move comes as a response to the sudden rise in the number of incidents of evasion, caught after the implementation of the Goods and Services Tax (GST). The GST Council has taken a number of measures, such as the introduction of electronic waybills (e-way), to clamp down on tax evasion.
The panel that will consider this filing has GSTN chief executive Prakash Kumar, and other GST officials from state and central governments as members, and GST Council special secretary Rajeev Ranjan as the convenor.