E-Invoicing under GST- 11 Things to know.

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1. What is E-Invoicing under GST?

  • E-invoicing is a mechanism or system which has been developed with the objective
  • to authenticate the B2B transactions automatically by GSTN
  • for further use on common GST portal
  • It does not mean the generation of invoices by any computer system or tax portal.
  • E-invoicing standards approved by GST council in its 37th meeting held on Sept 2019
  • Generation of E-Invoice will be the responsibility of taxpayers.

2. Are all taxpayers required to generate E-Invoice under GST?

No, E-invoice is to be prepared by following class of persons-
  1. Aggregate turnover of the supplier in an FY >500 crores - Applicability Status is Voluntary - Date of applicability is 1st Jan 2020.
  2. Aggregate turnover of the supplier in an FY >100 crores - Applicability Status is Voluntary - Date of applicability is 1st Feb 2020.
  3. Aggregate turnover of the supplier in an FY >100 crore - Applicability Status is Mandatory - Date of applicability is 1st April 2020.
  4. Aggregate turnover of the supplier in an FY >500 crores(For B2C Transaction) - Applicability Status is Voluntary - Date of applicability is 1st April 2020.

3. What is the procedure for generating an E-Invoice under GST?

Steps involved in the generation of E-invoice-
  • Generation of invoice by the taxpayer in its accounting or billing software
  • Creation of JSON file of the same to upload it on Invoice Registration Portal (IRP)
  • Generation of Invoice Reference Number (URN) by the supplier (Optional Step)
  • Uploading the JSON file & IRN(if generated) of the invoice to IRP
  • Generation of IRN by IRP(if not generated by the supplier) and its validation by IRP by digitally signing and attaching QR code after performing duplication checks
  • Once the invoice (JSON) is digitally signed by IRP & QR code is attached to it, it becomes an E-invoice and same will be sent to supplier & recipient by IRP on mail
  • The so-called E-invoice can now be downloaded by both supplier and recipient
  • IRP transfer the details of E-invoice to invoice registry of GST and E-way Bill system

4. Is E-Invoicing applicable for all types of transactions?

  • At present, E-invoicing is applicable for B2B, Exports & SEZ sales.
  • Applicable for Tax invoices, Dr/Cr notes, RCM invoices except proforma invoices.

5. What is Invoice Reference Number (IRN)?

  • A unique number based on hash (logarithm of Supplier GSTIN, Invoice No., Type & FY)
  • Generated by IRP, can also be generated by supplier but valid only once registered on the portal
  • A unique identity for each invoice for the entire FY for a taxpayer
  • It is not an invoice number (invoice no. remain same as mentioned on the invoice)

6. What is the Quick Response code (IRN)?

  • A code generated by IRP after validation of invoice (digital signing of invoice by IRP).
  • Consist of following E-invoice parameters-
    • GSTIN of Supplier& Recipient
    • Invoice Number, date and value (taxable & gross value)
    • No of line items, HSN code of the main item ( highest taxable value), Unique IRN
  • Checking invoice by tax officer on the roadside by the offline app if the internet not available.

7. What if e-invoice is not prepared by the taxpayer to whom E-Invoicing is applicable?

  • Then the invoice issued by them shall not be treated as invoice under the CGST Act.

8. Is there any requirement to issue e-invoice in triplicate and duplicate?

  • No, taxpayers who are required to prepare e-invoice are not required to do so.

9. Where the requirement of E-invoicing specified in GST?

  • The schema or standard has been issued and the same is available on GSTN
  • The applicability has been made vide Notifications No.68/69/70/71/72-CT dated 13th Dec 2019.

10. What are the timings of issuing an E-invoice?

  • Invoice shall be issued as per invoicing provisions laid in section-31 of CGST Act,2017-
    • For Goods-On or before removal of goods
    • For Services-before or after provisioning of service but within 30/45 days

11. Where the taxpayer is required to register invoices or modes of getting the invoice registered?

  • Invoice is to be registered in Invoice Registration Portal (IRP) a portal for registering invoices.
  • Following portal designated as IRP which will be made operational for E-invoicing
    • www.einvoice1.gst.gov.in / einvoice2.gst.gov.in / www.einvoice3.gst.gov.in
    • einvoice4.gst.gov.in/www.einvoice5.gst.gov.in www.einvoice6.gst.gov.in
    • einvoice7.gst.gov.in / www.einvoice8.gst.gov.in/ www.einvoice9.gst.gov.in
    • www.einvoice10.gst.gov.in
  • Multiple modes like-API based, Mobile app-based, Offline tool based and GSP based.

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