Banks, telcos, insurers may be exempted from GST e-invoices

New Delhi: Banks, airlines, insurance companies, armed forces and telecom service providers are likely to be exempted from mandatory issuing of e-invoices under goods and services tax (GST), said people aware of the matter. "Banks, airlines, telcos and other entities that have direct customer interaction on a large scale may be exempted from filing their e-invoices under GST,” said one of the persons, who did not wish to be identified.

Another person said the government would have to specify the exemptions through notification in the rules. Such a move is likely to benefit entities in the sectors that issue a number of invoices to customers directly or have direct debit and credit facilities such as in the case of banks, said experts. Banks and insurance companies are currently allowed consolidated invoices.

“These entities would have to undergo heavy compliance costs if the exemption was not allowed,” said Bipin Sapra, partner at EY. From April 1, companies with an aggregate revenue of Rs 100 crore or more have been mandated to issue e-invoices, as the government embarks on digital filing of invoices under goods and services tax (GST) regime amid efforts to curb tax evasion and fraudulent claims of GST credits while increasing tax collection.