Impact of GST E-Invoicing on Tax Compliance and Revenue Mobilization in India: A Conceptual Assessment of Digital Tax Administration during 2020–May 2023

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@article{1723456,
      author = {Dr. Shamala K.},
      title = {Impact of GST E-Invoicing on Tax Compliance and Revenue Mobilization in India: A Conceptual Assessment of Digital Tax Administration during 2020–May 2023},
      journal = {Iconic Research And Engineering Journals},
      year = {2023},
      volume = {6},
      number = {12},
      pages = {1654-1670},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1723456.pdf},
      abstract = {A significant milestone in India's digital transition of tax administration was achieved with introduction of GST e-invoicing on 1 October 2020, which mandated that specified categories of registered enterprises must digitally report invoice data through a prescribed system, thus generating validated and structured transaction data that can be accessed by GST tax administration; against this context, this conceptual paper asks whether implementation and gradual expansion of GST e-invoicing in India since October 2020 helped strengthen tax compliance and revenue mobilization by providing for greater transaction transparency, harmonized invoices, accurate reporting, input-tax-credit authentication, audit trails, and timely data for tax administration; using a purely conceptual and qualitative research design based on secondary data only from 1 October 2020 to 31 May 2023, comprising government notifications, GST Council reports, CBIC and GSTN data, Economic Surveys, official compliance and revenue data, institutional studies, and related research literature, which it analyzes through a thematic-constructivist method rather than correlational analysis, the paper finds that GST e-invoicing has the potential to enhance GST compliance architecture by generating structured digital invoice records, reducing reporting variability, enabling matching of B2B transactions, supporting input-tax-credit validation, enhancing transparency of B2B sales, and helping detect invoice and input-tax-credit anomalies, thereby raising the possibility that tax loss can be limited and the effective tax base can be transformed into revenue; at the same time, these gains are contingent upon technology upgrade costs, ERP linking cost, digital capabilities, procedural complications, GST system change management, compliance costs for MSMEs, data quality issues, and persistent distortions from fake invoice, fake transactions, and bogus input-tax-credit claim distortions, which can diminish the potential effects of GST e-invoicing; accordingly, the paper concludes that GST e-invoicing is best conceptualized not merely as an e-invoicing requirement but as part of an integrated India-wide information-driven digital tax administration system that depends on solid e-invoicing data, taxpayer education, systematic support to businesses, GST system interoperability, risk management, and balanced regulation.},
      keywords = {GST E-Invoicing, Tax Compliance, Revenue Mobilization, Digital Tax Administration, Input Tax Credit, Transaction Visibility, Tax Evasion, India.},
      month = {June},
  }