e-invoice is supposed to be rolled out from 1st April 2020 but the same has been postponed to 1st Oct 2020. The threshold for the rollout of e-invoice has been increased to Rs 500 Crores on account of the pandemic like situation and also excluded the issue of e-invoice by the taxpayers registered under SEZ.
The new return formats also scrapped and this is a blessing to all the taxpayers as they need not implement and learn the new return requirements from 1st Oct 2020.
Based on the feedback received from the trade and industry, the schema for the IRN has been announced wide Notification No 60/2020 – Central Tax Dated 30th June 2020. With the change of the schema, the validations have also undergone some change in the APIs and validations. New API for the Cancellation of e-waybill is released and also the new version of APIs is released.
The validation of the Generate IRN API has changed and the new validations are listed below.
Validations for Generate IRN API
1. E-Invoice request JSON data has to be validated as per the e-Invoice JSON Schema given in the notification.
2. Version of the Schema is mandatory and should be latest as per the latest notification.
3. IRN should not be passed as part of the request; it is generated by the e-Invoice system and sent as response.
4. The following fields should have one of the values given in the master codes.
5. The category of transaction of ‘Business to Consumer (B2C)’ invoices will not be considered and hence the API interface should not request for IRN for these transactions.
6. Document number should not be starting with 0, / and -. Also, alphabets in document number should not have alphabets in lower cases. If so, then request is rejected.
7. Supplier should ensure that the unique invoice number is being generated for the financial year for each invoice, in his ERP/manual system. The financial year is derived from the date of invoice. The financial year starts from 1st April and ends on 31st March.
8. Duplicate IRN requests are not considered. That is, if the IRN is already generated on particular type of document and document number of the supplier for the financial year, then one more IRN cannot be generated on the same combination.
9. e-invoice(IRN) cannot be re-generated for the cancelled e-invoice(IRN) also.
10. Request for the IRN/e-Invoice can be made only by the supplier of the goods or services.
11. In case of e-commerce transactions, the e-Commerce Operator can request for the IRN/e-invoice on behalf of the supplier. In this case, the e-Commerce Operator should have been registered on the GST portal as e-Commerce Operator and pass eCom_GSTIN accordingly.
12. In case the supplier is SEZ unit or SEZ developer, then he cannot generate e-Invoice.
13. The Document Date can be yesterday or today’s date.
14. ‘Reverse Charges’ can be set as ‘Y’ in case of B2B invoices only and tax is being paid in reverse manner as per rule. Even in case of Reverse Charged invoices, the Supplier has to generate the IRN.
15. Recipient GSTIN should be registered and active. In case of transaction of direct export, recipient GSTIN has to be URP and state code has to be 96, POS should be 96.
16. In case, Recipient is SEZ unit or SEZ developer, the Bill to State code should be 96 and also POS should be 96.
17. First two digits of the Supplier/Recipient GSTIN should match with the state code passed in the Supplier / Recipient details accordingly except if supply type is SEZ or exports wherein Recipient state code will be 96.
18. PIN Codes are validated against the States, they belong to.
19. If ‘Shipping party’ is provided, then the transaction is considered as ‘Bill To-Ship To’.
20. If ‘Dispatching party’ is provided, then the transaction is considered as ‘Bill From – Dispatch From’.
21. If both Shipping and Dispatching parties are provided, then the transaction is considered as ‘Combination of Both’ (Bill From – Dispatch From and Bill To- Ship To).
22. In case of export transactions for goods, the ‘Ship-To’ address should be of the place/port in India from where the goods are being exported.
23. In case IGST on intrastate supply, tax rates and tax values related to IGST should be passed, and Supplier state code and Recipient state code should be same.
24. The state code of the Supplier GSTIN and POS will decide whether the supply type is Interstate or Intrastate. That is, if the State code of Supplier and POS is same, then it is intra-state, otherwise it is inter-state. However IGST on intrastate supply attribute will overrule this condition.
25. In case of Exports and SEZ, the supply is always Interstate
26. JSON payload size cannot exceed 2MB.
Validations on Items:
1. Serial number of the item is verified for duplicate values.
2. Each item needs to have valid HSN code with at least 4 digits. That is, items of goods type should be 4 or 6 or 8 digits and items of service type should be 4 or 5 or 6 digits. HSN Code should be valid as per the GST master.
3. If Is Service is selected, then the HSN codes must belong to services.
4. Each item should have valid Unit Quantity Code (UQC) as per the master codes, in case of goods.
5. Quantity and Unit Quantity Code are mandatory for Goods and optional for Services.
6. Tax rates are being validated. Only the allowed tax rates will be accepted.
7. In case of intra-state transaction, the sum of SGST and CGST tax rates should be entered as GST Rate.
8. In case of inter-state transaction, the IGST tax rate and value has to be passed.
9. In case of export transaction, IGST tax rate and value has to be passed.
10. In case the Recipient is SEZ unit, then IGST tax rate and value has to be passed irrespective of state of the Recipient.
11. Maximum number of items in each invoice should not exceed more than 1000 items and a minimum of 1 item should be available.
Calculation of Values:
1. The following summation validations are to be done for items
2. The following summation validations are to be done on Invoice total
3. Calculated value / amount in above points can be between actual calculated value / amount and calculated value / amount rounded up to next rupee.
4. The round-off value can be upto Rs. 9.99
Validations on e-waybill:
1. E-waybill can be generated only if E-way Bill related details are passed where distance is mandatory.
2. E-way Bill is not generated for document types of Debit Note and Credit Note and Services.
3. E Way Bill can be generated provided at least HSN of one item belongs to goods.
4. If only Transporter Id is provided, then only Part-A is generated. Transport Mode, Vehicle Type, Vehicle No, Transportation document number and date should be null or attributes should not have been passed.
5. If mode of transportation is ‘Road’, then the Vehicle number and vehicle type should be passed. If mode of transportation is Ship, Air, Rail, then the transport document number and date should be passed. Vehicle type and vehicle number should be null or attributes should not have been passed.
6. The Vehicle no. should match with specified format and exist in Vahan database.
7. E-Waybill will not be generated if the Supplier or Recipient GSTIN is blocked due to non-filing of Returns.
8. Pincode of Recipient GSTIN is mandatory if Ship-To details are not entered.
9. PIN-PIN distance is validated.
10. In case of export of goods, shipping address should have been passed during generation of IRN.
11. In case incomplete information has been passed for generation of E Way Bill, then IRN will be generated and returned but not E Way Bill number. However subsequently, based on IRN, E Way Bill can be generated.
Validations for Cancel e-waybill
1. E-way bill can be cancelled by the generator of the e-way bill only.
2. E-way bill can be cancelled within 24 hours of generation of e-way bill.
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