New Delhi, Oct. 12 -- Indian businesses paying for overseas software, cloud storage and consulting services may face tighter goods and services tax (GST) compliance requirements as the government considers expanding e-invoicing to imported services and purchases from unregistered suppliers covered under the reverse charge mechanism.

The proposal, recommended by the 57th GST Council, applies to businesses with an annual turnover of Rs.5 crore or more. If implemented, it could require companies to modify how they document, validate and report transactions on which they pay GST under the reverse charge mechanism.

Under the existing framework, Indian businesses purchasing services from overseas suppliers are generally required to account fo...