This quarter, we’re launching compliant tax invoicing in India. Find out more about the new service for India, which is available alongside the other 53 compliant countries supported by Taulia.
Taulia, the leading provider of financing for supply chain networks, launched compliant Indian tax invoicing in Q1 2018. The new service for India is available alongside the other 50+ compliant countries supported by Taulia globally and the additional 60+ countries where Taulia assists buyers and suppliers to capture and exchange the invoice data.
Taulia offers invoicing and archiving services in India in compliance with mandated in-country processes and in collaboration with our partner Trustweaver. Taulia’s solution supports all Indian business-to-business invoices, goods and services invoices, in line with Goods and Services (GST) tax in-country reforms consisting of the nationwide uptake of CGST, SGST, IGST and UTGST for corporate indirect tax payments. India adopted the GST tax regime in July 2017, GST replaces, the majority of previous federal and state level indirect taxes. Taulia’s solution provisions for both domestic and cross border invoicing and is now available to all buyers and suppliers in our financial network.
India operates a ‘post audit’ invoicing model, which means that the invoice is audited by the Tax Authority after it has been issued by the taxpayer (supplier) and delivered to the buyer – the audit can take place anytime within 8 years according to the GST archiving Act. The solution operates a PDF advanced electronic signature to ensure data integrity and authenticity of the parties. In addition, mandated in-country commercial and tax features have been incorporated to capture required trading elements for both domestic and cross border exchanges.
India is one of the fastest growing global economies, it is not only one of the principal players in Asia but globally. India’s gross domestic product (GDP) grew by 7.2 percent in the quarter to December 2017 exceeding expectations, especially in manufacturing and construction. The Indian economy is expected to continue to grow at that pace in 2018 and as a result of that India will overtake Great Britain and France and reach the number 5 spot in the ranking of world economies, as measured by country GDP. Corporate earnings in India are projected to grow by over 20 per cent in fiscal year 2017-2018 supported by normalization of profits, especially in sectors like automobiles and banks.
The tax collection figures between April-June 2017 quarter show an increase in net indirect taxes by 30.8 percent and an increase in net direct taxes by 24.79 percent year-on-year, portraying sound strong growth. India’s net direct tax collections reportedly grew by 18.2 per cent in April-December 2017 from a year before. Further to the GST rollout, it appears that a wealth of information and data is already available and with advances in data analytics, it is anticipated that Indian Tax Authorities will diligently follow audit trails to further reduce tax fraud and capture additional tax revenue.
Taulia’s invoicing service in India meets the demands of our largest clients and partners, many of which are continuously expanding their business activity in India and the APAC region. Most large corporates are making costs efficiencies by vigorously automating their invoice issuance and delivery processes to benefit from end-to-end automation as well as ensuring compliance with in-country regulation. Taulia’s India invoicing service is now available to all corporate clients that are already using Taulia’s network to connect and exchange compliant invoices with millions of their suppliers throughout their supply chains in India and globally.