Business community given opportunity for compliance: RTO Hyderabad launches digital invoicing enforcement drive

HYDERABAD: The Regional Tax Office (RTO) Hyderabad has initiated enforcement action to ensure compliance with the digital invoicing system and the provisions of the Sales Tax laws.

During the course of the enforcement drive, approximately 30 vehicles carrying goods were stopped, as the required digital invoices and relevant documents were not available.

It was observed that, despite registration in the Digital Invoicing system, consignments were being transported without the issuance of digital invoices.

Under the relevant provisions, a tax invoice is required to be issued before the movement of goods.

Accordingly, the concerned taxpayers were informed of their legal obligations and advised to ensure proper compliance with the Digital Invoicing requirements.

The Enforcement Squads stopped such goods consignments, calculated due tax and on clearance of due tax / those who produced DI (digital invoice), vehicles were allowed to move on.

It was proved during the exercise that tax laws which have been followed in letter and spirit after the stoppage of goods, could have been followed at the first stage i.e. at the time of despatch of goods as well.

Following the action, Adil Ahmed Siddiqui, President, Hyderabad Chamber of Commerce & Industry, and S.M. Jafri, President, Hyderabad Tax Bar Association, held a meeting with the Chief Commissioner Inland Revenue, RTO Hyderabad, Sajjad Akbar Khan.

They appreciated efforts on enforcement of the Digital Invoicing system with transparency and that the business community be given an opportunity to understand and comply with the new requirements of law i.e issuance of DI at the time of despatch of goods.

The Chief Commissioner assured them that the business community would be facilitated and guided towards the complete implementation of the Digital Invoicing system.

In response, Chief Commissioner RTO Hyderabad, Sajjad Akbar Khan, expressed his willingness to pause further enforcement action, subject to the assurance from the Chamber and Tax Bar that they would play their role in ensuring immediate and effective voluntary compliance by the business community.

This opportunity has been provided in the spirit of facilitating taxpayers and promoting compliance with the law so that the business community may have adequate opportunity to achieve voluntary compliance.

The initiative is part of the efforts of RTO Hyderabad to promote a transparent and properly documented tax system, while ensuring respect for tax laws and effective cooperation with the business community.

Copyright Business Recorder, 2026