GST Council Proposes Extending E-Invoicing to Imported Services and Unregistered Suppliers

Key facts

• The 57th GST Council has recommended extending e-invoicing to imported services and purchases from unregistered suppliers under the reverse charge mechanism, applying to businesses with an annual turnover of ₹5 crore or more.
• Indian businesses paying for imported services already issue self-invoices under the reverse charge mechanism because overseas suppliers do not issue Indian GST invoices.
• The GST Council has proposed a mechanism to correct tax liability and input tax credit (ITC) reported in GST returns, potentially from the April 2027 return period, to be placed in the public domain for time-bound consultation with Finance Minister Nirmala Sitharaman authorised to approve changes.
• The changes aim to reduce mismatches between tax liability reported by businesses and ITC claimed, as GST moves towards greater use of the Invoice Management System (IMS), which allows buyers to accept, reject or keep supplier invoices pending.