Issuing invoices is key to selling products and their delivery in accordance with the country’s tax laws conclusions, and non-invoices may affect Ola Electric’s revenue bookings when it announces its March quarter and fiscal 25 years of revenue.
In a newsletter with the United Roads Department, the company said it received a confirmation order for 25,207 vehicles in February, which was much higher than the number shown by the government registration portal Vahan.
After inquiries on road transport and highways (Morth), the company responded on April 7 that it produced invoices for about 9,206 cars in the month. Additionally, to clarify the exchange on April 8, the company said that when orders were placed, customers paid 90% of the orders, or 22,686 cars. This left a gap of about 13,500 cars and no invoices were generated.
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Mint In the past month, private communications between Ola Electric and the Highway Department and the company’s exchange documents have been reviewed.
In a statement Mint On April 12, a company spokesperson stressed that its usual delivery schedule is affected by the transition from the registration process to an internal team.
“Our standard vehicle delivery schedule is between 1 and 2 weeks from the purchase date, depending on the customer’s location and vehicle selection. The invoice is generated at the time of vehicle availability and then registered and delivered.”
The development is amid the backdrop of Ola Electric, which has steadily lost competitors in recent months, notably Bajaj Auto and TVS Motor Company, which have quickly emerged with new products and products.
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In March, data from FADA (the Federation of Auto Dealers Associations) showed that Bajaj Auto was at the extreme position in the retail of electric two-wheelers, with TV motors ranked second and third in OLA. To be sure, Ola has a market share of 29.9% in FY25 with a retail price of 344,009 units and a market share of 29.9% compared to its 34.79% market share of 29.9% in FY24.
Invoice requirements
In addition to the sales record of the company’s booking income, the invoice is also a formal record for the purpose of goods and services tax (GST). Typically, an invoice contains details of the customer, the amount of GST, the number of GST and the details of the products sold.
Experts and industry voices often say that there is no huge gap in total sales in the generation of invoices and in a month.
“In some cases, one or two sales invoices may take. In some cases, one or two days, but there is no long delay,” said an executive at the two-wheeler manufacturer, on anonymous condition.
Gaurav Makhijani, tax partner and head of taxation (North India and Gujarat), a tax consulting firm Roedl & Partner India, noted that if directed to the consumer business, invoices are usually generated immediately after the sale.
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“Under GST law, invoices must be issued mandatory before the goods begin or deliver the goods to the customer,” Makhijani added. “In some cases, booking is made before delivery is made.”
How the event unfolds
The problem with Ola Electric’s sales data began with the company’s huge gap in Vahan portal registration and total sales in February. The portal shows about 8,600 cars registered by Ola Electric in February, but the company claimed in a statement that it sold 25,000 cars this month.
Aola told the exchange that there was a renegotiation with two agencies, Rosmerta Digital Services Pvt. Ltd and Shimnit India Pvt. Limited, resulting in interruption of registration process.
The Roads Department recorded the gap in sales and registration data and wrote to the company on March 18 asking for a detailed introduction to the number of vehicles produced, sold and registered in February.
The company replied on March 21 that it received confirmed orders for 25,207 vehicles in February. It is worth noting that these confirmed orders include 1,395 orders for its new motorcycle sports car X, whose first model was launched from the factory on April 11.
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The ministry found that the company provided insufficient information and wrote another letter on March 31 asking the company to sell and issue the number of vehicles in February, and Ola Electric replied that it invoked 9,206 orders in February. In those orders, Ora said in his reply to the ministry that by April 3, about 7,820 vehicles had been delivered to customers.
In at least 15% of invoicing vehicles in February, the delivery time was extended by more than a month. The company attributes the gap in invoices to its production process.
“It is important to note that our regular registration process is broken due to the transitions within the process. This affects registration and delivery, and therefore, vehicles are produced within the month of the month,” an Ola spokesperson said.
Typically, the invoice for a vehicle sale contains a Vehicle Identification Number (VIN), a unique character code assigned to each vehicle by the manufacturer.
According to Ola’s reply to the government, it produced 1,533 cars in February.
Ola Electric’s shares have fallen more than 17% since the February registration legend began, while the BSE Auto index has dropped 6%.
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