E-invoicing Concept

  • The GST Council approved the standard of e-invoice in its 37th meeting held on 20th Sept 2019
  • E-invoicing is proposed to be implemented from 1st January 2020.
  • It will be implemented in a phased manner by GSTN.
  • Similar to the new GST return filing system, the electronic invoicing system will first be available on a trial basis or voluntary compliance

What is E-invoicing ?

  • E-invoicing is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal.

How does it work ?

  • Step 1: Taxpayers have to upload the invoice details in their accounting software (Tally, ERP, Busy, SAP etc.) and generate the JSON file.
  • Step 2: Now this JSON file have to upload onto the Invoice Registration Portal (IRP) to be managed by the GST Network.
  • Step 3: IRP will validate the key details of the B2B invoice, checks for any duplications and
    • generates an Invoice Reference Number (IRN),
    • digitally signs the invoice and
    • creates a QR code in Output JSON for the supplier.
  • Step 4: IRP sends the e-invoice data with digital signature and QR code to the
    • Seller and Buyer on the mail Ids provided in the invoice.
    • GSTN Portal
      • In ANX-1 (for outward supplies) for the seller, and
      • In ANX-2 (for inward supplies) for the buyer.
    • E-way bill system
      • For creating Part-A of e-way bill and only vehicle number have to be added in Part-B of the e-way bill.
  • Buyer has an option to accept or reject the transaction.
  • The signing of e-invoice by seller is not mandatory
  • The invoices with an IRN Number will be considered as a valid tax invoice for GST purposes

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Qualification: CA in Practice
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Location: Faridabad, Haryana, IN
Member Since: 27 Oct 2019 | Total Posts: 2

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  1. Ranjit Veena Batra says:

    Thank you for sharing this information!
    What happens when the seller uploads a file, generates the e-invoice and then realises that there is a mistake committed. Are corrections / deletions allowed after the e-invoice has been generated ?

  2. P ARAVINDHAN says:

    Sir, we have GSTR1 till 31st March 2020, whereas E-invoicing system talks about ANX1 and ANX2. How E-invoicing system can be implemented, on voluntary basis, during January to March 2020

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