What’s in Today’s Article?

• GST e-Invoicing Latest News
• GST E-Invoicing: Overview & Process
• Advantages of GST E-Invoicing
• New GST E-Invoicing Rules from April 1, 2025
• GST e-Invoicing FAQs

GST e-Invoicing Latest News

• The GST Council of India introduced e-invoicing (electronic invoicing) in a phased manner to standardize business-to-business (B2B) invoice reporting to the GST portal. 
• There were no predefined formats. Hence, a uniform structure was developed in consultation with trade bodies and the Institute of Chartered Accountants of India. 
• Over time, several modifications have been made to the e-invoicing regulations to enhance compliance and efficiency. 

GST E-Invoicing: Overview & Process

• GST e-invoicing is a system where B2B and export invoices are reported to the Union Government’s e-invoice portal for validation. 
• Each invoice receives a unique Invoice Reference Number (IRN). 
• However, invoices are not generated by the government but are created by taxpayers in their own systems and then reported. 
• The system enables seamless electronic data exchange through API integration.

Approval & Rollout

• Approved in the 37th GST Council meeting on September 20, 2019.
• Rolled out in a phased manner starting October 2020 for businesses with an Annual Aggregate Turnover (AATO) above ₹500 crore.
• Extended in January 2021 to businesses with AATO between ₹100 crore and ₹500 crore.

Documents Required for IRN Generation

• GST Invoices
• Credit Notes
• Debit Notes (for B2B supplies and exports)

Exempted Businesses

• Special Economic Zone (SEZ) units
• Insurance and banking sectors, including NBFCs
• Multiplex cinema admissions
• Goods transport agencies (road transport)
• Passenger transport services

E-Invoicing Process

• Taxpayers generate invoices using their own accounting/billing/ERP systems.
• The invoices are reported to the Invoice Registration Portal (IRP).
• The IRP validates the invoice and assigns a Unique Invoice Reference Number (IRN) along with a QR code.
• A GST invoice is legally valid only if it contains a valid IRN.

Advantages of GST E-Invoicing

• Automation & Efficiency
  • Invoice details are auto-populated into GST return forms and e-way bills, reducing time and manual effort.
  • Minimizes disputes and processing costs by ensuring digital storage of all forms.
  • Improves payment cycles, enhancing overall business efficiency.
• Standardization & Interoperability
  • Uses a digitally verifiable e-invoice format based on international standards (UBL/PEPPOL).
  • Ensures machine readability and uniform interpretation across different platforms.
  • Allows taxpayers to seamlessly switch between different portals.
• Fraud Prevention & Compliance
  • Reduces fraudulent transactions by providing real-time access to data for tax authorities.
  • Helps in curbing tax evasion and malpractice, leading to greater transparency.

New GST E-Invoicing Rules from April 1, 2025

• Mandatory 30-Day Deadline for E-Invoice Reporting
  • Businesses with an Annual Aggregate Turnover (AATO) of ₹10 crore and above must report e-invoices to the Invoice Registration Portal (IRP) within 30 days of issuance.
  • Earlier, this rule applied only to businesses with AATO above ₹100 crore.
  • With the lower turnover threshold, many more businesses must now comply with this rule.
• Stricter Compliance & Penalties
  • Currently, businesses delay invoice uploads, causing discrepancies in Input Tax Credit (ITC) claims.
  • From April 1, IRPs will block invoice uploads beyond 30 days, rejecting late submissions.
  • Non-compliance may lead to penalties and financial consequences.
• Compulsory Two-Factor Authentication (2FA)
  • From April 1, all taxpayers, regardless of turnover, must use Two-Factor Authentication (2FA) for e-invoice and e-way bill generation.

GST e-Invoicing FAQs

Q1. What is GST e-invoicing?

Ans. GST e-invoicing is an electronic system for reporting B2B and export invoices to the government’s Invoice Registration Portal (IRP).

Q2. How does GST e-invoicing work?

Ans. Businesses generate invoices, upload them to IRP, get a unique Invoice Reference Number (IRN), and use it for compliance.

Q3. What are the benefits of GST e-invoicing?

Ans. It automates compliance, prevents tax fraud, reduces errors, and integrates invoices with GST returns and e-way bills.

Q4. What changes in GST e-invoicing from April 1, 2025?

Ans. Businesses with ₹10 crore+ turnover must report invoices within 30 days, and Two-Factor Authentication (2FA) is mandatory.

Q5. Who is exempt from GST e-invoicing?

Ans. SEZ units, banks, NBFCs, passenger transport services, and goods transport agencies are exempt.

Source: TH | CNBC TV18

What’s in Today’s Article?

• India-US Trade Deal Latest News
• US Criticizes India’s Trade Policy
• India-US Bilateral Trade Overview
• Proposed India-US Trade Agreement
• US Tariff Pressure and India's Response
• Conclusion: Balancing Trade and Geopolitics
• India-US Trade Deal FAQs

India-US Trade Deal Latest News

• A day before the US reciprocal tariffs take effect on April 2, India has agreed to the Terms of Reference (ToR) for a Bilateral Trade Agreement (BTA) with the US. The ToR sets the negotiation framework and required high-level approval. 
• While discussions were still ongoing when US negotiators left after four days of talks, both countries are now set for formal negotiations. 

US Criticizes India’s Trade Policy

• The United States Trade Representative (USTR) has raised concerns over India's trade policies in its ‘Foreign Trade Barriers’ report.

Key Concerns Raised by USTR

• Internet Shutdowns
  • The US claims localized shutdowns disrupt commercial activities.
• Dairy Feed Regulations
  • India mandates that dairy products must come from animals that have not consumed blood meal or internal organs, a rule the US argues lacks scientific justification.
• Agricultural and GM Food Imports
  • India requires GM-free certification for milk, pork, and fish imports, which the US says is not based on scientific risk assessment.
  • The report raised concerns over India’s agricultural support programmes, claiming they distort markets.
  • It also criticized India’s pulse import restrictions as being opaque and unpredictable.
• India’s Data Localisation Rules
  • The USTR report raised concerns over India's data localisation requirements for payment service providers and banks. 
  • Since 2018, the Reserve Bank of India (RBI) has mandated that all electronic payment data related to Indian citizens be stored on local servers. 
  • The US argues that this regulation was introduced without stakeholder consultation and hampers foreign firms’ ability to detect fraud and secure global networks.
• Intellectual Property (IP) Issues
  • India remains on the ‘Priority Watch List’ due to weak trade secret protection and slow patent approvals.
  • It flagged multiple issues in India’s intellectual property (IP) framework, including:
    • Patent Delays: Long waiting periods for patent grants and excessive reporting requirements.
    • Patentability Restrictions: The US continues to monitor India’s Section 3(d) of the Patents Act, which limits patentability to prevent evergreening of pharmaceutical patents.
    • Weak IP Enforcement: Concerns over inadequate protection of undisclosed test data, lack of an early resolution mechanism for pharmaceutical patent disputes, and delays in trademark opposition proceedings.
    • Trade Secret Protection: The absence of specific laws for safeguarding trade secrets.
• Medical Price Controls
  • The US criticized India’s price caps on coronary stents and knee implants, arguing they discourage American manufacturers due to inflation and production cost concerns.

India-US Bilateral Trade Overview

• U.S. total goods trade with India were an estimated $129.2 billion in 2024. 
• U.S. goods exports to India in 2024 were $41.8 billion, up 3.4 percent ($1.4 billion) from 2023. U.S. goods imports from India totaled $87.4 billion in 2024, up 4.5 percent ($3.7 billion) from 2023. 
• The U.S. goods trade deficit with India was $45.7 billion in 2024, a 5.4 percent increase ($2.4 billion) over 2023.

Proposed India-US Trade Agreement

• Both nations plan sector-specific negotiations to finalize a bilateral trade agreement.
• Key objectives:
  • Increase market access for goods.
  • Reduce tariff and non-tariff barriers.
  • Strengthen supply chain integration.
• The US seeks duty reductions on industrial goods, automobiles, wines, petrochemicals, dairy, and agricultural products.
• India may push for concessions on labour-intensive sectors like textiles.

US Tariff Pressure and India's Response

• Former US President Donald Trump criticized India’s high tariffs, calling them "brutal," and proposed reciprocal tariffs.

India’s Possible Trade Strategy

• Lobbying for Exemptions: India may negotiate trade exemptions to avoid severe economic impacts.
• ‘Make in India’ Expansion: India could attract companies seeking to exit China and relocate manufacturing.
• Strengthening Trade with Other Regions: Deepening ties with the EU, Southeast Asia, and Africa to reduce dependence on the US.
• Diversifying Trade Relations: Expanding into new markets to minimize risks from US trade policies.

Potential Benefits for India

• Shift in Supply Chains: US tariffs on China could push global manufacturers to expand operations in India.
• Growth in Key Sectors: Electronics, automobiles, and pharmaceuticals may benefit.
• Boost for Indian Automakers: If US tariffs make European and Chinese cars expensive, Indian brands like Tata, Mahindra, and Maruti Suzuki could gain traction.

Conclusion: Balancing Trade and Geopolitics

India’s reaction will depend on the severity of US tariffs and their economic impact. The India-US strategic partnership extends beyond trade, making a balanced approach crucial for both nations.

India-US Trade Deal FAQs

Q1. What is the India-US trade deal about?

Ans. It aims to reduce tariffs, improve market access, and strengthen supply chains between India and the US.

Q2. Why is the US critical of India's trade policies?

Ans. The US raises concerns over India’s internet shutdowns, IP protection, agricultural restrictions, and data localization rules.

Q3. How does the trade deal affect India?

Ans. India may secure market access, reduce dependency on China, and benefit from US investments in key sectors.

Q4. What are India’s challenges in trade negotiations?

Ans. India faces pressure on tariff reductions, IP rights, and easing restrictions on dairy, agriculture, and medical price controls.

Q5. How will US tariffs impact India’s economy?

Ans. High US tariffs could hurt Indian exports, but India may diversify trade relations and attract manufacturers shifting from China.

Source: IE | MC

What’s in Today’s Article?

• Air Pollution Latest News
• Introduction
• Major Initiatives to Combat Air Pollution
• Structural Challenges on the Ground
• A Case for Localized, Data-Driven Solutions
• Funding and Implementation Gaps
• Avoiding High-Tech Overdependence
• Global Examples and India’s Path Forward
• India Must Prioritize Air Quality in Its Development Agenda FAQs

Air Pollution Latest News

• India’s air pollution crisis is no longer just a seasonal inconvenience. 
• Hospitals overflow with respiratory cases, schools shut down, cities disappear under layers of smog, and Indian metros regularly top global pollution rankings.

Introduction

• India’s air pollution crisis is no longer confined to seasonal spikes during winter. 
• It has evolved into a persistent public health emergency that deeply affects millions every year. 
• From clogged hospitals to school closures and invisible skylines over major cities, the impact of air pollution touches nearly every aspect of life. 
• Despite a slew of government interventions, India’s response remains disjointed and inconsistent, risking the country’s long-term environmental and human well-being.

Major Initiatives to Combat Air Pollution

• India has introduced several flagship programs to tackle air pollution:
  • National Clean Air Programme (NCAP): Launched in 2019, it aims to reduce PM2.5 and PM10 concentrations in 132 cities by 20-30% by 2026 (base year 2017).
  • Bharat Stage VI (BS-VI): Strict vehicular emission norms introduced in 2020.
  • Pradhan Mantri Ujjwala Yojana (PMUY): Promotes LPG usage among rural households to reduce dependence on biomass fuels.
  • Faster Adoption and Manufacturing of Electric Vehicles in India (FAME II): Boosts the electric vehicle ecosystem.
  • Swachh Bharat Mission (Urban): Addresses waste management, a key contributor to air pollution in urban areas.
• While these schemes are steps in the right direction, they need better coordination and monitoring to deliver lasting impact.

Structural Challenges on the Ground

• Air pollution in India is not just a technical issue, it’s a complex socio-political and economic challenge. 
• Governance constraints, outdated municipal infrastructure, and a lack of coordination between agencies all make pollution control a monumental task.
• Municipal bodies, the ones closest to pollution sources, often lack both resources and authority. 
• Their mandates are rarely aligned with national air quality goals. The PM2.5 reduction target by 2026 will be unachievable without a strong ground-level machinery that connects policy with implementation.

A Case for Localized, Data-Driven Solutions

• Effective mitigation requires a deeper understanding of local conditions. For example, simply saying “vehicles cause pollution” isn’t enough. Policymakers must ask:
  • What types of vehicles are used?
  • What fuels power them?
  • How old are these vehicles?
  • What is the traffic density and pattern?
• Unless emission sources are mapped with this level of granularity, local governments cannot prepare actionable plans.
• A phased and data-driven approach is the need of the hour:
  • Phase I: Develop local emission profiles.
  • Phase II: Tie funding directly to action points based on emission data.
  • Phase III: Track emissions reductions, not just ambient pollution levels, to evaluate success.

Funding and Implementation Gaps

• India’s clean air financing still lags behind. Compared to China’s ₹22 lakh crore budget for five years, India’s NCAP funding is a fraction. 
• Even when related schemes (like PMUY, FAME II, Swachh Bharat) are included, utilization of funds remains poor. 
• Between 2019 and 2023, only 60% of NCAP funds were utilized, a symptom of institutional misalignment more than lack of intent.
• Moreover, reliance on ambient air quality data is misleading. Pollution readings are often influenced by seasonal weather patterns. 
• A better metric would be activity-based, such as the number of biomass stoves replaced or the number of diesel buses retired.

Avoiding High-Tech Overdependence

• There is a growing risk of over-reliance on digital dashboards, smog towers, and AI-based monitoring tools. 
• While helpful, these cannot substitute basic structural reforms. If pollution from open biomass burning, outdated industrial processes, and old vehicles remains unchecked, no amount of technology will help.
• This also creates urban bias, where high-tech solutions benefit metro cities while rural and semi-urban areas remain neglected. Elite capture of clean air resources must be avoided.

Global Examples and India’s Path Forward

• Countries like China, Brazil, and the U.S. provide lessons:
  • China: Shut down coal plants at a massive scale.
  • Brazil: Empowered communities to manage waste systems.
  • California: Reinvested pollution revenue in marginalized communities.
  • London: Banned coal-use first before installing high-tech air sensors.
• India must carve its own path, one that is grounded in federalism, sensitive to its large informal sector, and focused on behavioural change.

India Must Prioritize Air Quality in Its Development Agenda FAQs

Q1. What is India’s goal under the NCAP?

Ans. To reduce PM2.5 levels by 20-30% by 2026, using 2017 as the base year.

Q2. Why is ambient air quality monitoring not sufficient?

Ans. Because it's heavily influenced by weather and geography; it doesn’t capture actual emissions reductions.

Q3. What programs complement NCAP in India’s clean air efforts?

Ans. PMUY, FAME II, and Swachh Bharat Mission also target pollution sources.

Q4. What are the main challenges in executing clean air policies?

Ans. Lack of local capacity, underutilisation of funds, and poor data on emission sources.

Q5. What is the risk of over-relying on tech solutions for pollution control?

Ans. It can create urban bias and divert attention from fundamental reforms like eliminating biomass burning and regulating old vehicles.

Source: TH