Business · Trade · 8 hrs ago
GST Council proposes e-invoicing for imported services and unregistered suppliers
India’s GST Council has proposed extending e-invoicing to some purchases by businesses with annual turnover of ₹5 crore or more.
The proposal covers imported services, such as software, cloud storage and consulting, and purchases from unregistered suppliers under the reverse charge mechanism.
Under reverse charge, the Indian buyer is responsible for paying the applicable GST.
Indian businesses already issue self-invoices for imported services because overseas suppliers do not provide Indian GST invoices.
The proposed changes could mean businesses need to adjust how they record and report these purchases.
The Council also proposed a way to correct differences between tax liability and input tax credit reported in GST returns, potentially starting with the April 2027 return period.
The changes are intended to reduce mismatches and tax notices, but the revised mechanism will first be opened for consultation, and details on how imported-service invoices would work with the Invoice Management System remain unclear.
The 57th GST Council has proposed extending e-invoicing to imported services and purchases from unregistered suppliers under the reverse charge mechanism.
The proposal applies to businesses with annual turnover of ₹5 crore or more.
The council also proposed a mechanism to correct tax liability and input tax credit reported in GST returns, potentially from the April 2027 return period.
The proposals aim to reduce mismatches between tax liability and claimed input tax credit and could increase compliance requirements.
- Who
- The 57th GST Council proposed the changes, which would apply to businesses with annual turnover of ₹5 crore or more.
- What
- It proposed e-invoicing for imported services and purchases from unregistered suppliers under the reverse charge mechanism.
- When
- The proposal was reported on October 11, 2026. The changes are proposed; an implementation date for e-invoicing is not stated.
- Where
- India.
- Why
- The proposals aim to improve reporting and reduce mismatches between tax liability and claimed input tax credit.
This story does not have two clearly opposing sides.
The latest GST Council decisions signal a gradual but definite shift towards an IMS-driven compliance framework
Better alignment between GSTR-1, GSTR-3B and GSTR-2B should help resolve genuine mismatches before they lead to notices or prolonged proceedings.
This story does not have a timeline yet.
- Council
- 57th GST Council
- Turnover threshold
- ₹5 crore or more annually
- Return period
- April 2027 is a possible start for the proposed correction mechanism
- Consultation
- The revised mechanism is to be placed in the public domain for a time-bound consultation
Sources
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