Frequently Asked Questions on e-Invoice

Q 1. What is an e-invoice?

Ans: Issue of a tax invoice in an electronic format to the recipient and validated/authenticated by the tax administration before it is transmitted to the receiver.

Q 2. Is it mandatory to issue e-invoice from the designated government portal?

Ans: No, the tax invoice can be issued as in the existing format by the taxpayers using their ERP/Accounting packages, and then they have to get the same validated/authenticated.

Q 3. From where do I need to issue the e-invoice?

Ans: The e-invoice needs to be issued from the Invoice Registration Portal(IRP).

Q 4. Can I access IRP (Invoice Registration Portal) Directly?

Ans: Yes, It can be directly accessed by the taxpayers who are having turnover of Rs 500 crores currently or through the GST Suvidha Providers (GSPs).

Q 5. From when is e-invoicing being implemented in India?

Ans: It is optional from 1st January 2020 and mandatory from 1st April 2020.

Q 6. Is it applicable to all taxpayers or an only select set of taxpayers?

Ans: It applies to only taxpayers who are having a turnover of Rs 100 crores in the financial year.

Q 7. Is e-invoice required to be issued for all transactions or only specific transactions?

Ans: e-invoice is required to be issued to the issued mandatorily for

  • B2B (Business to Business)
  • B2G (Business to Government)
  • Exports
  • Supplies through e-commerce operators
  • Reverse Charge Transactions

Q 8. What is IRN?

Ans: IRN refers to the Invoice Reference Number.

Q 9. Is IRN (Invoice Reference Number) the same as the Tax Invoice Number?

Ans: IRN (Invoice Reference Number) is different from the Tax Invoice Number.

Q 10. Who will issue the IRN (Invoice Reference Number)?

Ans: Invoice Reference Number is issued by the Invoice Registration Portal.

Q 11. Where do I need to show the Invoice Reference Number (IRN)?

Ans: It has to be shown separately on the Tax Invoice.

Q 12. What are the documents for which Invoice Reference Number is required to issued?

Ans: It is required to be issued for the following documents

  • Tax Invoice
  • Debit Notes
  • Credit Notes

Q 13. What are the documents for which Invoice Reference Number is not required to issued?

Ans: Delivery Challan

  • Bill of Supply

Q 14. Do I need to send the physical copy of the tax invoice to my customer separately?

Ans: It is not required to send the physical copy of the tax invoice separately to your customers in case of the supply of services.

Q 15. Do I need to sign a copy of the tax invoice once I get the IRN?

Ans: As per Notification No 74/2018 – Central Tax Dated 31st December 2018, the tax invoice is not required to be signed if issued electronically if the tax invoice issued is as per the provisions of the Information Technology Act 2000.

Q 16. What will happen if the IRN if my supplier returns the goods partially or fully?

Ans: In case if the supplier returns the goods partially or fully, a Credit Note has to be issued with reference to the Original Tax Invoice, and an IRN also has to be generated for the Credit Note.

Q 17. What will happen to the IRN if my customer refuses to take the delivery of the goods?

Ans: In case if the customer refuses to take the delivery of the goods, you need to issue a Credit Note for the same, and an IRN also has to be generated for the Credit Note with reference to the Original Tax Invoice.

Q 18. Once IRN is generated, do I need to update my Anx- 1 separately?

Ans: No, you need not upload the same again as the IRP portal expected to update the Anx – 1 data accordingly.

Q 19. Do I need to generate IRN if I am transferring goods to my branch in a different state?

Ans: Yes, you are required to generate the IRN in case of branch transfer also as it falls under B2B transactions.

Q 20. Do I need to generate IRN if I am sending my material directly from my job workers’ location to a registered taxpayer in GST?

Ans: Yes, you need to generate the IRN in case of shipment happening from your job workers’ location also.

Q 21. Is my e-invoice generated securely?

Ans: Yes, it is very much secure as the portal is using HASH SHA256

Q 22. How many lines can my tax invoice have when I am issuing generating an IRN?

Ans: As per the information available on the developer portal of e-invoice, it is 1000 lines.

Q 23. In the case of Business to Government Transactions, they do not have GSTIN; what should I give for such transactions?

Ans: In case of B2G transactions, if the GSTIN is not there the use the Registration number issued by TDS Authority.

Q 24. How many types of QR Codes are there in the e-invoice system?

Ans: There are two different QR Codes in the e-invoice system.

Q 25. What are the two different QR Codes in the e-invoice system?

Ans: Whenever the IRP generates an IRN, a QR code is issued, and the same has to be printed on the tax invoice. The second QR code is required to be generated by the taxable person having turnover above Rs 500 crores on B2C invoices enabling the customer to make payment using the same.

Q 26. Is it mandatory for me to generate the QR code for the IRN?

Ans: QR Code will be generated by the IRP portal only, hence not required to be generated.

Q 27. What data elements are shown in the QR Code for an IRN generated by the IRP?

Ans: The QR code contains the following data

  • GSTIN of the Supplier
  • GSTIN of the Recipient
  • Tax Invoice Number
  • Date of Tax Invoice
  • Invoice value (taxable value and gross tax)
  • The number of line items.
  • HSN Code of the main item (the line item having the highest taxable value)
  • Unique Invoice Reference Number (hash)

Q 28. In case of the QR Code to be printed on the B2C tax invoices, what data it should contain?

Ans: The QR code should contain the payment bank details of the taxpayer who is issuing the tax invoice.

Q 29. My turnover is less than Rs 100 crores, but I am making supplies through e-commerce operations, do I need to issue e-invoices

Ans: Yes, the basis of the documentation released by the GSTN is required.

Q 30. Can e-commerce operators generate IRN on behalf of their suppliers?

Ans: Yes, an e-commerce operator can generate IRN on behalf of its suppliers, who are having a turnover of less than Rs 100 Crores.

Q 31. Can I issue an e-invoice on a future date?

Ans: The date of the tax invoice should be the date on which it is being submitted or the date before the date on which it is being submitted.

Q 32. Can I cancel an IRN which is issued?

Ans: Yes, IRN issued can be canceled.

Q 33. In what period I can cancel the IRN after it is issued?

Ans: It can be canceled within 24 hours of the issue of the IRN.

Q 34. What should I do in case if I realize that IRN is submitted for wrong data after 24 hours?

Ans: As IRN cannot be canceled after 24 hours, a credit note can be issued for the same referring to the original tax invoice. This will nullify the impact of GST liability and square of the commercial transaction.

Q 35. Do I need to generate IRN for reverse charge transactions?

Ans: Yes, IRN has to be generated in case of Reverse Charge transactions, which are B2B in nature for outward supplies only. For inward supplies, it is not required.

Q 36. While generating IRN for export transactions, what values have to be passed to IRN apart from the normal B2B transactions?

Ans: The following values are to be passed

  • Subtype of export – exports or Supplies to SEZ or Supplies to SEZ Developer
  • Payment Type – with payment or without payment
  • Port Code
  • Country Code
  • Currency Code

Q 37. In the case of export transactions, the customer is overseas, and he does not have GSTIN. In such cases, what should I do?

Ans: In the case of direct exports, “URP” has to be mentioned in place of Customers GSTIN.

Q 38. Will my customers GSTIN will be validated will issue IRN?

Ans: Yes, IRN will be generated only if the GSTIN of your customer is active, i.e., his GSTIN is not blocked.

Q 39. On the tax invoice, how many digits of HSN codes should be shown?

Ans: On the tax invoice minimum, 4 digits of HSN code are to be shown in case of goods and services. Max 8 digits in case of goods and 6 digits in case of services.

Q 40. Can there be any difference between the invoice total and the invoice total entered manually?

Ans: Yes, there can be a difference, but it should not be more than Rs 2/-.

Q 41. In case if I am using API’s, do I need to have separate authentication for e-waybill API’s and e-invoice API’s?

Ans: Yes, it can be used, but before the expiry of the session.

Q 42. On the e-invoice system it shows my old mail id and mobile number, what should I do?

Ans: E-invoice system is using the email id and mobile number registered by the taxpayer on the GST Common Portal, for communication purposes. If it is old, get is updated with the latest on the common portal and communicate to us at support.einv.api@gov.in so that we can cross-verify and update on the sandbox for accessing credentials.
If you are GSP, then get is updated with GSTN and request them to communicate to us so that it can be updated.

Q 43. Can I generate multiple IRNs using the same Jason?

Ans: Yes, it is possible to generate multiple IRN using the same Jason.

Q 44. Do I need to generate an e-waybill after generating IRN?

Ans: Yes, e-waybill is required to be generated as per the applicable provisions in the state.

Q 45. What should I do if I forgot my password for my login in on the e-invoice portal?

Ans: You can reset the password using your user name and registered mobile number on the e-invoice portal.

Q 46. In case if I have registrations in multiple states, Can I use the same API credentials for all the states?

Ans: In case if you are using APIs and having registrations in different states, the Client ID and Client Secret will be the same for all the states, only the user name and password will be different.

Q 47. For how many hours the Authentication token generated will be valid?

Ans: Once the authentication token is generated, it will be active/valid for 6 hours.

Q 48. What is the algorithm used for encryption and decryption f data?

Ans: For encryption and decryption of data AES256 (AES/ECB/PKCS7Padding) along with SEK Key is used. The SEK Key is generated and passed by the e-invoice system while sending the authentication token.

Q 49. Can I hard code the SSL Certificate in the API code for the e-invoice system?

Ans: No, it not advised to hardcode the SSL Certificate in the API code as the SSL certificate will be changed regularly based on the security norms.

Q 50. Can the tax invoice which I am issuing have both taxable and exempted supplies?

Ans: A clarification is required on this from the department as the Generate IRN Schema says HSN code is mandatory, and the minimum length is 4 characters, whereas the Notification No 1/2020 – Central Tax Date 1st January 2020 says it is optional.

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Qualification: CMA
Company: Logo Infosoft Business Technology Private Limited
Location: Hyderabad, Telangana, IN
Member Since: 12 Sep 2017 | Total Posts: 25
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6 Comments

    1. mgbhogavalli says:

      If exempted products are sold then tax invoice is not issued…so in your case to the best of my knowledge it is not required

  1. chetana says:

    Is GST e-invoicing is applicable for GSTN of SEZ?
    or it is straight forward NO without any sub-conditions?

    Thanks and Regards,
    Chetana

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