E-Invoicing or Electronic Invoicing is the largest revolution that govt is imposing on trade and industry. Advanced use of technology is must to curb the tax evasions and for control. The Central board for direct taxes already uses the Artificial Intelligence and Machine learning for E -Assessments. E- Appeals. The same way CBIC has come forward to implement E –Invoicing for real time governance. Government introduced E-invoicing to keep a check on fake invoices, claiming bogus ITC and others.
What is E- Invoicing: E- Invoicing or Electronic Invoicing is not generating invoices in Invoice Registration Portal (IRP). This portal is exclusively for maintaining, administering, generating and monitoring E Invoices. e – Invoice System The main misconception of many taxpayers is that from now, they can directly generate invoices in IRP. This is entirely a myth. The taxpayers need to generate their invoices using their existing software’s as they used to do earlier. The Details of already generated invoices should be uploaded in IRP where the GSTN will authenticate and validate the information provided and in return generates the
a) Unique Invoice Reference Number (IRN)
b) QR Code and
c) Digitally sign the Invoice.
The IRN and QR code should be printed on the Invoice, with the help of QR Code any external agencies can know the details of the Invoice.
When it is going to applicable: The GST council in its 39th meeting held on 14-03-20 deferred the implementation of this initiative to 01-10-20. Earlier GST council in its 37th meeting decided to implement E invoicing from 01-04-20 and trial run from 01-01-20.
Who are Eligible: The taxpayers whose aggregate turnover exceeds 500 crores should generate E Invoicing from 01st Oct 20. The turnover is to be calculated on PAN based. Insurance, Banking, financial institutions, NBFCs, GTA, passenger transportation services are excluded from the list of eligible taxpayers.
What are the advantages:
What are major misconceptions:
Steps for Generating E- Invoice:
E Invoices can be generated in offline.
There are other methods for generation of E invoices i.e., through API, the detailed steps can be followed here https://taxguru.in/goods-and-service-tax/brief-note-on-e-invoice-under-gst.html
Information to be provided in Schema
Entire information is divided into sections, where we need to provide the required information
1. Document Details: Document date, type and Number should be entered
2. Buyer Details: GSTIN, Legal name, trade name, address, phone number & e- mail
3. Dispatch Details: Name and address of dispatch should be provided it is an optional field
4. Shipping details: Shipping GSTIN and address should be provided (Optional Fields)
5. Product details: Product details like Quantity, Rate of tax, HSN code, rate etc.,
6. Batch details: Batch Name, Expiry date and warranty date should be provided
7. Value Details: Taxable amount, CGST, SGST, IGST, Discount, rounding off etc.,
8. Export Details: Shipping bill, shipping date, port, foreign currency
9. E-way bill details: Transporter ID, name, mode, distance, vehicle no and type
At the top sheet taxpayers are requested to provide Yes/No to the fields that are applicable to them.
By enabling them schema will remove or add relevant fields applicable to them.