Ever since the concept of e-invoicing was approved by the GST council, Introduction of e-Invoice was approved by GST council in its 37th meeting held in the month of September,2019 with the key objective to ensure inter-operability of e-invoices across the GST eco-system.
In this article, let’s discuss and understand everything about e-invoicing under GST.
Q. Which businesses are liable to generate e-invoices now?
Ans. Only taxpayers with aggregate turnover (based on PAN) in a financial year exceeding ₹500 crore have to generate e-invoices for B2B transactions.
Q. Who are exempted to generate e- invoices?
Ans. SEZ units, Insurance banking (including NBFCs) goods transport agency (transporting goods by road in goods carriage), passenger transport services multiplex cinema admissions and Whose turnover is less than Rs 500 crore.
Q. When will e-Invoicing get implemented in India?
Ans. It has been notified that e-Invoicing will be implemented in India from 1st October 2020 onwards.
Procedure for generation of E-Invoice under GST:
Businesses must generate the e-invoices in the standard format (JSON) prescribed by the GST Network.
After the generation, the invoice (JSON format) will be updated on the Invoice Registration Portal (IRP) either directly or through third party provided apps.
The IRP will assign an IRN to the invoice and digitally sign it.
Following this, the IRP will generate a QR code containing the important information of the invoice.
Finally, the e-invoice will be emailed to the seller and the recipient of the document.
Q. Can an E-invoice be cancelled fully/ partially?
Ans. An invoice and be not be cancelled partially but can be cancelled fully it must be reported within 24 Hrs.
Q. Will there be a facility for e-invoice generation on the common GST portal?
Ans. No, invoices will continue to be generated on the individual ERP softwares that are currently in use by businesses.
Q. Will the bulk-uploading of invoices for generation of IRN be possible?
Ans. No, invoices must be uploaded one at a time into the IRP. The ERP of a company will need to be designed so that it can place the request for the upload of individual invoices.
Q. How can an e-Invoice be amended?
Ans. All amendments to an e-Invoice can be made only on the GST Portal.
Q. What are the advantages of E- invoicing?
Ans. E-invoice has many advantages for businesses such as standardisation, inter-operability, auto-population of invoice details into GST return and other forms (like e-way bill), reduction in processing costs, reduction in disputes, improvement in payment cycles and thereby improvement in overall business efficiency. Updating GST Returns also saves lot of time, human errors for data entry and also avoids major reconciliation issues.
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