E-INVOICING SYSTEM UNDER GST
Q.1 What is e-invoicing?
‘E-invoicing’ or ‘electronic invoicing’ is a system where in the tax payer will upload his invoice details and register his supply transaction on the Government Invoice Registration Portal (IRP)and get the Invoice Reference Number (IRN) generated by the IRP system. That is, the tax payer will first prepare and generate his invoice using his ERP/accounting system or manual system and then upload these invoice details to IRP and get the unique reference number, known as IRN. It is clarified again that the e-invoice means NOT preparation or generation of tax payer’s invoice on government portal. It is only intimating the government portal that invoice has been issued to the buyer, by registering that invoice on the government portal.
Q.2 What is the purpose of E-invoice system?
The basic aim behind adoption of e-invoice system is to reduce the submission of multiple statements and details by the tax payers and help the purchaser to get the Input tax credit easily.
Q.3 When will the e-invoice system be implemented?
The e-invoice system will be implemented in phased manner. Government has issued the notification indicating that the registered businesses having aggregate turnover greater than Rs 500 crores for the financial year 2019-20 will be required to electronically transmit invoices to the Invoice Registration Portal (IRP) from 1st October, 2020.
Q.4 Who is Responsible for generating e-invoice?
Registration of e-invoice of generation of IRN is the responsibility of the supplier, who will be required to report the invoice details to e-invoice system, which in turn will generate a unique Invoice Reference Number (IRN).
Q.5 What types of documents are to be reported to GST System?
The taxpayers need to report the following documents to the e-invoice system.
Q.6 What is the common portal for generation of e-invoice?
The common portal for generation of e-invoice is https://einvoice1.gst.gov.in
Q.7 Will businesses now be required to generate e-invoices on the GST portal or the e-invoice portal?
No. The tax payer will first prepare and generate his invoice using his ERP/accounting system or manual system and then upload these invoice details to IRP and get the unique reference number, known as IRN. It is clarified again that the e-invoice means NOT preparation or generation of tax payer’s invoice on government portal. It is only intimating the government portal that invoice has been issued to the buyer, by registering that invoice on the government portal.
Q.8 How do I know the status of enablement of my GSTIN for generation of IRN?
The ‘Invoice Status of Taxpayer’ under Search can be used to know the status of enablement of your GSTIN for generation of IRN.
Q.1 I have already registered in GST Portal. Whether I need to register again on the E-invoice system Portal?
Yes. All the registered users under GST who wish to generate IRN need to register on E-invoice system using his GSTIN. Once GSTIN is entered, the system sends an OTP to his registered mobile number registered with GST Portal and after authenticating the same, the system enables him to generate his/her username and password for the E-invoice system. After generation of username and password of his/her choice, he/she may proceed to make entries to generate IRN.
Q.2 I have already registered in EWB Portal. Whether I need to register again on the E-invoice Portal?
No, Users who are already registered on the e-way bill portal need not to again register on the e-invoice system. User can use EWB login credentials to login at e-invoice system.
Q.3 Whenever I am trying to register, the system is saying you have already registered, how should I proceed?
This is indicating that you (your GSTIN) have already registered on the E-invoice system or e-way bill system and have created your username and password on the e-way bill or e-invoice system. Please use these credentials to log into the e-invoice system. If you have forgotten username or password, then please use the ‘Forgot Username’ or ‘Forgot Password’ facility provided on the portal to recollect your username or create new password accordingly.
Q.4 Whenever I am trying to register, the system is saying there is no contact (Mobile) number with this GSTIN in GST Common Portal, how should I resolve this issue?
This is indicating that e-invoice system is unable to get the contact details (mobile number of email address) for your GSTIN from the GST Common Portal (www.gst.gov.in). Please contact GST helpdesk 0120-4888999.
Q.5 Whenever, I’m trying to register with my GSTIN, the system is saying ‘Invalid GSTIN’ or the details for this GSTIN are not available in GST Common Portal. How should I resolve this issue?
This is indicating that the GSTIN entered by you is wrong or your GSTIN details are not available in the GST Common Portal. Please check the GSTIN entered or go to the GST portal (www.gst.gov.in) and check the details of your GSTIN under ‘Search Taxpayer’ tab.
Q.6 Whenever I am trying to register, the system is showing wrong address or mobile number. How should I resolve this issue?
This is indicating that you might have updated your business registration details in the GST Common Portal recently. Please ‘Update from Common Portal’, to pull the latest data from the GST Common Portal. If even after this action, wrong data is displaying, kindly update the details in GST common portal through amendment process.
Q.7 Who all can register at e-invoice system and can generate IRN?
The taxpayers having aggregate turnover of 500 Crores and above have register at e-invoice system and generate IRN.
Q.8 Will it be possible to allow invoices that are registered on invoice registration system/portal to be downloaded and/or saved?
Yes. The IRP after registering the invoice, will share a digitally signed e-invoice for record of the supplier. You can download the invoice for further use and action.
Q.1 Whenever, I am trying to login the system says ‘Invalid Login…Please check your username and password’. How should I resolve this issue?
This is indicating that you are trying to login to the E-invoice system with incorrect username and password. Please check the username and password being used to login to the system. If you have forgotten the username or password, then please use the ‘Forgot Username’ or ‘Forgot Password’ facility provided on the portal to recollect your username or create new password accordingly.
Q.2 Whenever, I am trying to login the system says ‘Your account has been frozen’. How should I resolve this issue?
This is indicating that your account has been frozen because you might have cancelled your registration or your GSTIN has been de-activated in the GST Common Portal. Please visit the GST Common Portal (www.gst.gov.in) to find the status of your GSTIN under ‘Search Taxpayer’ tab. In case you are able to log in on GST portal but not log on E-invoice portal, please lodge your grievance at https://selfservice.gstsystem.in/.
Q.3 Whenever, I am trying to login the system says ‘your account has been blocked…Pl try after 5 minutes. How should I resolve this issue?
This is indicating that you had tried to login to the E-invoice system with incorrect username and password for more than 5 times. Hence, the system has blocked your account for security reasons and it will be unblocked after 5 minutes.
Q.4 What should I do, if I do not remember my username and password?
If you have forgotten the username or password, then use the ‘Forgot Username’ or ‘Forgot Password’ facility provided on the portal to recollect your username or create new password accordingly. The user needs to enter some details after authenticating the same via an OTP, then, user will be provided with the username and password.
GENERATION OF IRN
Q.1 What is Invoice Reference Number (IRN)?
The Invoice Reference Number (IRN) is a unique number (also known as hash) generated by the e-invoice system using a hash generation algorithm. For every document such as an invoice or debit or credit note to be submitted on the e-invoice system, a unique 64 characters Invoice Reference Number (IRN) shall be generated which is based on the computation of hash of GSTIN of supplier of document (invoice or credit note etc.), Year and Document type and Document number like invoice number. This shall be unique to each invoice and hence be the unique identity for each invoice for the entire financial year in the entire GST System for a taxpayer.
Q.2 How do I generate IRN?
There are two modes for generation of IRN
Q.3 Can I generate IRN for an Invoice for which IRN is already generated?
No, only unique invoice from a taxpayer will be accepted by the e-invoice system. E-invoice system will check in Central Registry of GST system to ensure that same invoice from same supplier pertaining to same financial year is not being uploaded again for generating one more IRN.
Q.4 How long will the generated e-invoice be available in the government portal?
Once the e-invoice system has validated and registered an IRN, it will be made available to the taxpayer for reference on e-invoice system for only 24 hours.
Q.5 What should I do if state is not auto-populated on entering PIN code?
If state name is not auto-populated, then select the correct state and continue IRN generation.
Q.6 What are pre-requisites to generate the e-invoice?
The pre-requisite for generation of e-invoice is that the person who generates e-invoice should be a registered person on GST portal and e-invoice system or e-way bill system. The documents such as tax invoice or Debit Note or credit Note must be available with the person who is generating the e-invoice. If a user is generating Bulk invoices, then he/she should have a valid JSON file as per the e-invoice schema to upload on the e-invoice system or he/she has to integrated with API interface and generate the IRN
Q.7 How can anyone verify the authenticity or the correctness of e-invoice?
Anyone can verify the authenticity or the correctness of e-invoice by uploading the signed JSON file or Signed QR Code into e-invoice system. The option ‘Verify Signed Invoice’ under Search option can be selected and the signed JSON file can be uploaded and verified. Similarly, the QR Code Verify app may be downloaded and used to verify the QR Code printed on the Invoice.
Q.8 What is the meaning of digitally signed e-invoice?
The digitally signed invoice is one which has been digitally or electronically signed by the IRP after receiving the invoice upload from the supplier. That is, the government is authenticating the genuineness of the invoice submitted/registered by the tax payer.
Q.9 Would the Supplier be allowed to issue his own invoice and if yes, will the Invoice number and IRN be required to be mentioned?
Q.10 What are the different Supply types available in e-Invoice portal ?
The different supply types that can be reported are B2B: Business to Business, SEZWP: To SEZ with Payment , SEZWOP: To SEZ without Payment, EXPWP: Export with Payment, EXPWOP: Export without Payment, DEXP: Deemed Export
SIGNED QR CODE
Q.1 What is the meaning of digitally signed QR code?
The digitally signed QR code of the invoice is one which has been digitally or electronically signed and prepared the QR Code by the IRP after receiving the invoice upload from the supplier. That is, the government is authenticating the genuineness of the invoice, by preparing the important information of the invoice in QR Code form and signing it so that it can be genuineness of the invoice can be verified offline by anyone using offline tools. The E-invoice will generate a QR code, containing some important parameters of invoice and digital signature of it so that it can be verified on the central portal as well as by an Offline App. This will be helpful for tax officers checking the invoice on the roadside where Internet may not be available all the time. The web user will get a printable form with all details including QR code. The QR code will consist of the following e-invoice parameters:
Q.2 What is the purpose of Signed QR Code?
The IRP will generate a QR code containing the unique IRN (hash) along with some important parameters of invoice and digital signature so that it can be verified by an Offline App.
Q.3 When would the Signed QR code be available?
IRP system will provide this ‘Signed QR Code’ as part of the response to the request made by the tax payer for the IRN generation.
Q.4 How one can use the Signed QR Code?
Content of the signed QR code can be easily verified by the tax payers or Tax Officials to ascertain whether the invoice is registered with the IRP and is digitally signed by the IRP itself. By validating the content of the QR code data with the digitally signed content (which is part of the QR code itself) one can check the authenticity of the content. If the content of the QR code is tampered, the e-Invoice will become invalid and signature verification fails. The Signed QR Code can be verified by anyone using the offline app provided on the IRP portal.
Q.5 What will be there in Signed QR Code?
The QR code will consist of the following e-invoice parameters:
Q.6 Does tax payer have to print the Signed QR Code?
The Signed QR Code may be printed by the tax payer on the invoice copy.
Q.7 What shall be size of the Signed QR code on the invoice?
The size of the printed signed QR code can be 2 X 2 inches. However, it depends on the size of the space available on the invoice. But it should be readable from the QR code scanners.
Q.8 How the Signed QR code looks on the invoice?
When it is printed it will look like as follows:
CANCELLATION OF IRN
Q.1 Can IRN be deleted or cancelled?
The IRN once generated cannot be modified or deleted. However, if IRN is generated with wrong information, it can be cancelled. Once it is cancelled, the IRN cannot be generated on the same invoice. The cancellation is required to be done within twenty-four hours from the time of generation.
Q.2 If there is a mistake or wrong entry in the e-invoice, what has to be done?
If there is a mistake, incorrect or wrong entry in the e-invoice, then it cannot be edited or corrected. Only option is cancellation of e-invoice and generation of a new one with correct details.
Q.3 Whether e-invoices generated through GST system can be partially / fully cancelled?
E-Invoice can’t be partially cancelled. It has to be fully cancelled. Cancellation has to be done as per process defined under Accounting Standards.
The e-invoice mechanism enables invoices to be cancelled. This will have to be triggered through the IRP, if done within 24 hours. After 24hours, the same will need to be done on the GST System.
Q.4 If there is a mistake or wrong entry in the generated IRN, what has to be done?
If there is a mistake, incorrect or wrong entry in the already generated IRN, then it cannot be edited or corrected. Only option is cancellation of e-invoice and generation of a new one with the new invoice. Once it is cancelled, the IRN cannot be generated on the same invoice.
Q.1 What is the need to create sub-users?
Many of the businesses have multiple places of business or head office and branch at different locations or work remotely from the principal place of business. Generating IRN with a single login may be a challenge for them. To overcome this challenge business can create multiple sub-users. A sub-user can use the same login credentials created originally and perform the actions as per the access that is given to them. For example, a sub-user may be allowed to generate IRN and restricted to accept IRN.
Q.2 Why do I need sub-users?
Most of the times, the tax payer or authorized person himself cannot operate and generate IRN’s. He will be dependent upon his staff or operator to do that. He would not like to avoid sharing his user credentials to them. In some firms, the business activities will be operational 24/7 and some firms will have multiple branches. Under these circumstances, the main user can create sub-users and assign the roles to them. He can assign generation of IRN or report generation activities based on requirements. This facility helps him to monitor the activities done by sub-users. However, the main user should ensure that whenever employee is transferred or resigned, the sub-user account is frozen / blocked to avoid mis-utilisation.
Q.3 How many sub-users can be created?
For every principal/additional place of business, user can create maximum of 10 sub-users. That is, if tax payer has only (one) principal business place (and no additional place of business), he can create 10 sub-users. If tax payer has 3 additional places and one principal place of business ( ie 4 places), then he can create 40 (4 X 10) sub users.
Q.4 When to freeze the sub-users and the steps to follow?
The e-invoice system gives an option to the taxpayer to freeze the sub-user i.e Disable the sub-user from using facilities on the e-invoice system. Step 1: Click ‘Freeze Sub-user’ under the option ‘User Management’ on the left-hand side of the dashboard Step 2: Select the sub-user you want to Freeze, the below screen opens up. Now click on ‘Freeze’ button appearing at the bottom of the screen. On clicking the ‘Freeze’ button, The sub-user will no longer be able to access any facilities on the e-invoice system.
Q.5 How to generate the IRN from different registered business places?
The registered person can generate the IRN from his account from any registered business place. However, he/she needs to enter the address accordingly in the e-invoice form. He/she can also create multiple sub-users and assigned to these places and generate the IRN accordingly.
Q.6 Why are the reports available only for a particular day?
The user is allowed to generate report on daily basis. Because of criticality of the system for performance for 24/7 operation, the reports are limited to be generated for a day. The user can change date and generate the report for that date. Hence, the user is advised to generate report daily and save in his system.
OTHER MODES OF GENERATION OF IRN
Q.1 What are the Modes of Generation of e-invoice, the taxpayer can use?
Multiple modes given below are envisaged at this stage under the proposed system for e-invoice, through the IRP (Invoice Registration Portal)/e-invoice system:
Q.2 How to generate Bulk e-invoices?
Steps to generate Bulk e-invoice:
After processing the JSON file the system generates list of e-invoice or error message.
Q.3 How can the taxpayer use the Android App to generate the IRN?
The taxpayer has to register the IMEI (International Mobile Equipment Identity) number of the mobile phones through which he intends to generate IRN on the e-invoice system. Please see the user manual for Mobile App based IRN generation available on the portal for further details.
Q.4 How to download mobile app?
The mobile app is not available in Play Store or App Store. The main user has to login and select the ‘for mobile app’ under registration menu at e-invoice system. The system asks to select the user/sub-user and enter the IMEI number of the user. Once it is entered, the concerned user gets the link in his registered mobile to download the app through SMS. Now, the user has to download the app by clicking that link and enable it to get installed on the mobile.
Q.5 What is bulk generation facility and who can use it?
Through this facility, user can upload multiple invoices and generate multiple e-invoices at one go. This facility can be used by the taxpayers, who can prepare bulk requests for IRN in a JSON file from their automated system, and upload it on the e-invoice system and generate IRN in one go. This avoids duplicate data entry into e-invoice system and avoids data entry mistakes also.
Q.6 How to use the bulk generation facility?
To use the bulk generation facility, one has to prepare the IRN requests through JSON file. This can be done in two ways – registered taxpayer can prepare the JSON file directly from his automated system. If he is unable do so, he can use excel based bulk generation tool available on the e-invoice portal. The invoice and other details need to enter as per the format and JSON file can be generated. This JSON file needs to be uploaded in the e-invoice portal for generation of multiple IRN. For more details, please refer to the ‘user manual of the bulk generation’ and ‘bulk generation tools’ under “Tool” section at E-invoice portal and follow the instructions.
Q.7 What are the benefits of the bulk generation facility?
Benefits of the bulk generation facility are as follows:
Q.8 How can the registered person integrate his/her system with e-invoice system to generate the IRN from his/her system?
The integration between e-invoice system and registered person’s system can be done through APIs. For availing this facility, the registered person should register the server details of his/her systems (through which he wants to generate the IRN using the APIs of e-invoice system) with e-invoice system. For further details, please go through the user manual.
Q.9 What is API Interface?
API interface is a site-to-site integration of two systems. Using this, the taxpayer can link his IT system with E-Invoice system to generate IRN directly from his IT solution without keying in the details for e-invoice form in the Portal. This reduces duplicate data entry and eliminates the data entry mistakes.
Q.10 What are the pre-requisite for using API interface?
API interface is a site-to-site integration of website of taxpayer with the E-invoice system. API interface can be used by large taxpayers, who need to generate bulk INR’s per day. However, the taxpayer should meet the following criteria to use the API interface:
Q.1 Will e-invoice schema cater to reverse charge mechanism?
Yes, E-invoice system has a reverse charge mechanism reporting as well
Q.2 Will there be separate invoice formats required for Traders, Medical Shops, Professionals and Contractors?
There will not be any separate invoice formats required for Traders, Medical Shops, Professionals and Contractors. Same e-invoice schema will be used by all kinds of businesses. The schema has mandatory and non-mandatory fields. Mandatory field has to be filled by all taxpayers. Non-mandatory field is for the business to choose. It covers all most all business needs and specific sectors of business may choose to use that non-mandatory field which are needed by them or their eco-system.
Q.3 Will it be possible to add transporter details as well?
No, the transporter details must be entered in the E-Way bill system only.
Q.4 How to Print an E-Invoice?
Here are the steps to follow:
Q.5 Does the e-invoice allow the declaration of export invoices/ zero rated supplies ( Goods on what GST is not Applicable or free from Tax)?
Yes, it allows the declaration of export invoices / zero rated supplies.
Q.6 With the introduction of e-invoices, what are the documents need to be carried during transit of goods?
For transportation of goods, the e-way bill will continue to be mandatory, based on invoice value guidelines. This aspect will be notified by the Government.
Please clarify whether exports would require e-invoice compliance.
Yes, the e-invoice schema also caters to the export invoices as well. The e-invoice schema is based on most common standard format and it meets the requirements of the export as well.
Q.7 Will it be possible to print the e-invoice?
It will be possible for both the seller as well as the buyer to print the invoice, using the signed JSON payload returned by the Invoice Registration Portal (IRP).
The QR code will not be an image sent by the IRP but string, which the accounting/billing software or the ERP will read and convert into QR Code.
Seller must place the QR Code on the print of the invoice. This will enable its validation.
Q.8 How would amendments be allowed in e-invoice?
Amendments to the e-invoice will be allowed on GST portal as per provisions of GST law. All amendments to the e-invoice will be done on GST portal only.
Q.9 Where can I get the Master codes list of Country, UQC, Currency, State and HSN Codes?
The master codes are available under Search -> Master Codes.
Q.10 Where can I get the list of GSPs (GST Suvidha Providers)
The GSP list is available in Search -> GST Suvidha Provider
Q.11 Where can I get the details of API Integration?
Please goto the site https://einv-apisandbox.nic.in/ for all the details of API Integration.