The GST facilitates input tax credits, but fake invoices and tax evasion are major problem areas worldwide, e-invoicing combats this. E-Invoice was introduced in India in a phased manner from October 2020. It entails real-time reporting of invoices to a government portal, yielding a unique Invoice Reference Number (IRN) and digitally signed and verifiable invoice.

Advantages include standardization, interoperability, and reduced reporting redundancy. Errors decrease as data is exchanged automatically. Analysis of e-invoice data aids in market trend understanding and tax collection prediction. Despite the unquantified impact, e-invoicing boosts indirect tax collection. It enhances compliance, reduces fraud, and provides detailed transaction data for government analysis and planning.