The GST Council has announced plans to introduce B2C e-invoicing in India, starting with a voluntary pilot in 2024-25, followed by gradual expansion and mandatory implementation by 2026-27 if successful. Similar to the B2B system, businesses will generate and upload invoices to the Invoice Registration Portal (IRP) for validation, ensuring tax compliance and fraud prevention. While B2C e-invoicing won’t be required for e-way bills, this move is expected to enhance transparency and streamline tax reporting across the country.
India to Launch B2C E-Invoicing Pilot, Full Rollout Expected by 2026-27
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Author: Ivana Picajkić
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Content accuracy validation date:
04.02.2025
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11:13h
In September 2024, The Goods and Services Tax (GST) Council has announced plans to introduce B2C e-invoicing in India, marking a significant step toward greater tax transparency and compliance. The decision, made during the 54th GST Council meeting, includes a voluntary pilot program set to roll out in selected sectors and states before full-scale implementation.
The Council has outlined a three-stage approach for B2C e-invoicing:
- Pilot Phase (2024-25) – Businesses in selected sectors and states will be encouraged to adopt e-invoicing voluntarily,
- Voluntary Expansion (2025-26) – More businesses can opt in before a mandatory requirement is enforced,
- Full Implementation (2026-27) – If the pilot proves successful, e-invoicing for B2C transactions will become mandatory nationwide.
How will B2C E-Invoicing work?
Similar to the existing B2B e-invoicing system, businesses will be required to generate and upload invoices to the Invoice Registration Portal (IRP). The process will include:
- Validation checks by the IRP, including GSTIN verification and invoice duplication prevention,
- Generation of a unique Invoice Reference Number (IRN) and QR code, which will allow consumers to verify the invoice in real time,
- Electronic sharing of invoices with the GST Network (GSTN) and the National Informatics Centre (NIC) for tax reconciliation.
Unlike B2B transactions, where input tax credit (ITC) claims depend on e-invoicing, B2C invoices will primarily serve as a compliance and fraud prevention measure.
The GST Council has clarified that e-invoicing details will not be required for B2C e-way bills, which are mandatory for the transport of goods exceeding ₹50,000 (approximately USD 577.85) in value.
What’s Next?
The government’s move toward B2C e-invoicing is expected to enhance tax compliance, reduce fraud, and improve invoice traceability. If the pilot program succeeds, the mandatory rollout could reshape the way businesses issue consumer invoices across India.
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