What is e-Invoicing ?
e-invoice is a Tax Invoice which is normally issued by every registered tax payer but it contains some additional information in the form of QR Code. The tax invoice generated through accounting software i.e. Tally, Busy etc. are transmitted on the IRP i.e. on Invoice Registration Portal or say e-invoicing portal in json file. The government portal validates the information and return back the json file with digital signature after generating IRN (unique invoice reference number for each invoice) and adding a QR Code. The said json file is imported in the Accounting/ ERP system that enables invoice to be printed with QR Code.
‘e-invoice’ in ‘e-invoicing’ does not means generation of invoice by Government Portal. Government Portal just receive the JSON file of invoice generated by the supplier and it validates the data, generates IRN and add a QR Code and return back the signed JSON to the supplier.
Process of e-invoicing
|Supplier||Invoice Registration Portal||GST System||Buyer|
Relevant Provisions/ References
|Sno.||Notification No.||Aggregate Annual Turnover exceeds in any FY since 17-18||Effective Date|
|1||61/2020 dt 30.07.20 ct||500 Cr||01/10/2020|
|2||88/2020 dt 10.11.20 ct||100 Cr||01/01/2021|
|3||05/2021 dt 08/03/21 ct||50 Cr||01/04/2021|
|4||01/2022 dt 24/02/22 ct||20 Cr||01/04/2022|
Who is liable to issue e-Invoice
Every registered taxable person whose aggregate annual turnover exceeds Rs. 20 Cr in any of the financial year since 2017-18 is liable to issue e-invoice by way of uploading its tax invoice in json file on Invoice Registration Portal (IRP) in accordance with e-invoice schema in INV-01 and getting back digitally signed json from IRP with IRN and QR Code.
Documents covered under e-Invoicing
Exemption from e-Invoice
Entity Level Exemption –
Document Level Exemption-
Transaction Level Exemption-
Objective and advantage of e-invoicing
Disadvantage of not issuing e-invoice when required
Time limit for reporting of e-invoice on IRP
No there is no time window. It is a real time reporting.
Can e-invoice be cancelled
Yes, it can be cancelled within 24 hours of reporting to IRO through “Cancel API”. After cancellation the GSTR-1 will be updated. However if the connected e-way bill is active and verified by the authority during transit, then cancellation of e-invoice will not be permitted by the IRP.
Amendment in e-invoicing
IRP does not allow amendment in e-invoices. However amendment, if any, needed can be done as usual on the e-filing portal while filing GSTR-1. However such changes will be flagged to proper officer for information.
Will the e-invoice details be pushed to GST System? Will they populate in the return?
Yes. On successful reporting of invoice details to IRP, the invoice data (payload) including
IRN, will be saved in GST System. The GST system will auto-populate them into GSTR-1 of the supplier and GSTR-2A of respective receivers.
With source marked as ‘e-invoice’, IRN and IRN date will also be shown in GSTR-1 and GSTR-2A.
Where e-invoicing is applicable, is carrying e-invoice print during transportation of goods mandatory?
No. As per Rule 138A(2) of CGST Rules, where e-invoicing is applicable, “the Quick Reference (QR) code having an embedded Invoice Reference Number (IRN) in it, may be produced electronically, for verification by the proper officer, in lieu of the physical copy of such tax invoice.”
What data is embedded in QR Code?
The QR code will consist of the following key particulars of e-invoice:
a. GSTIN of Supplier
b. GSTIN of Recipient
c. Invoice number, as given by Supplier
d. Date of generation of invoice
e. Invoice value (taxable value and gross tax)
f. Number of line items
g. HSN Code of main item (line item having highest taxable value)
h. Unique IRN (Invoice Reference Number/hash)
i. IRN Generation Date
How will the QR Code be received?
The QR code is part of signed JSON, returned by the IRP. It is a string (not image), which the ERP/accounting/billing software shall read and convert into QR Code image for placing on the invoice copy, like this.
What is dynamic QR Code? Does it has any relevance for B2B e-invoicing?
What businesses need to do, to be e-invoice ready?
Businesses will continue to issue invoices as they are doing now. Necessary changes on account of e-invoicing requirement (i.e. to enable reporting of invoices to IRP and obtain IRN), will be made by ERP/Accounting and Billing Software providers in their respective software. They need to get the updated version having this facility.
What is an Invoice Reporting Portal (IRP)
Invoice Registration Portal (IRP) is the website for uploading/reporting of invoices by the notified persons. Vide notification no. 69/2019-Central Tax dated 13.12.2019, ten portals were notified for the purpose of preparation of the invoice in terms of Rule 48(4).
Is e-invoicing voluntary?
No, it is not optional. Presently, only the notified class of persons will be allowed/enabled to report invoices to IRP.
Will it be possible for bulk uploading of invoices to IRP?
Yes. It is possible. The offline utility (‘bulk generation tool’) serves this purpose. Further, the ERP or accounting systems used by large taxpayers can be designed in such a way that they can report invoices in bulk to IRP.
Is Invoice number same as Invoice Reference Number (IRN)?
No. Invoice no. (e.g. ABC/1/2019-20) is assigned by supplier and is internal to business. Its format can differ from business to business and also governed by relevant GST rules. IRN, on other hand, is a unique reference number (hash) generated and returned by IRP, on successful registration of e-invoice.
How a typical IRN looks like?
IRN is a unique 64-character hash, e.g. 35054cc24d97033afc24f49ec4444dbab81f542c555f9d30359dc75794e06bbe. It is not required to be printed on the invoice as it is already embedded in the QR Code printed on the Invoice.