What is e-invoices?

} E-invoicing is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal.

} Under this system an identification or reference number will be issued against every invoice by the Invoice Registration Portal (IRP) managed by the GST Network (GSTN).

} All invoice information will be transferred from this portal to both the GST portal and e-way bill portal in real-time.

} Therefore, it will eliminate the need for manual data entry while filing ANX-1/GST returns as well as generation of part-A of the e-way bills, as the information is passed directly by the IRP to GST portal.

Notifications regarding e-Invoices under GST

Notification No Date of Issue Reference
68/2019 – Central Tax 13-12-2019 Changes in CGST Rules
69/2019 – Central Tax 13-12-2019 Notify the common portal for the purpose of e-invoice
70/2019 – Central Tax 13-12-2019 Notify the class of registered person required to issue e-invoice
71/2019 – Central Tax 13-12-2019 Give effect to the provisions of rule 46 of the CGST Rules, 2017
72/2019 – Central Tax 13-12-2019 Notify the class of registered person required to issue invoice having QR Code

Applicability of E-Invoice under GST

  • E-invoicing will be mandatory from 01-04-20 for businesses having Aggregate Turnover exceeding Rs 100 Crore.
  • It will start on voluntary basis from 01-01-20 if Aggregate Turnover is exceeding Rs 500 Crore.
  • it will start on voluntary basis from 01-02-20 if Aggregate Turnover is exceeding Rs 100 Crore.
  • Applicable for B2B invoices only.
  • For B2C invoices: QR code is required to be mentioned.
  • QR Code is mandatory for if Aggregate Turnover is exceeding Rs 500 Crores.
  • It is applicable on domestic B2B sales, export sales and sales to SEZ units.
  • Provisions will be applicable on tax invoices, debit notes, credit notes and RCM invoice except pro-forma invoices.

Invoice Payment Bill Taxation Money Concept

Process to generate e-Invoices

  • Invoice will be generated by the supplier in his own accounting or billing software.
  • JSON file will be generated by the supplier to upload on the Invoice Registration Portal (IRP).
  • Unique Invoice Reference Number (‘IRN’) can be generated by the supplier on the basis of 4 parameters like Supplier GSTIN, invoice number,  financial year and document type.
  • Supplier will upload the JSON file of the e-invoice along with IRN already generated directly on the IRP or through GSPs.
  • IRP will generate IRN and validate IRN of JSON if already uploaded by the supplier. IRP will add its signature on the invoice data as well as a QR code to the JSON.
  • Supplier will download digitally signed JSON with IRN along with a QR code. IRP willshare back digitally signed e-invoice to seller and recipient if email id’s are mentioned on the e-invoice.

Benefits of e-Invoicing

  • E-invoice resolves and plugs a major gap in data reconciliation under GST to reduce mismatch errors.
  • E-invoices created on one software can be read by another, allowing inter-operability and help reduce data entry errors.
  • Real-time tracking of invoices prepared by the supplier is enabled by e-invoice.
  • Backward integration and automation of the tax return filing process – the relevant details of the invoices would be auto-populated in the various returns, especially for generating the Part-A of e-way bills.
  • Faster availability of genuine input tax credit.
  • Lesser possibility of audits/surveys by the tax authorities since the information they require is available at a transaction level.
  • Complete trail of B2B invoices, elimination of fake invoices, System level matching of input credit and output tax.

Author Bio

Qualification: Other
Company: Scientific Security Management Services Private Limited
Location: Delhi, New Delhi, IN
Member Since: 17 Jan 2018 | Total Posts: 2

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January 2021