Invoicing Software

Service Involves

GST Invoicing
GST eInvoicing
eWay Bill

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Documents required For #Service

ID Proof

Name, address and GSTIN of the supplier and recipient.

HSN Code

HSN code of goods or service accounting code for services.

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Why

GST eInvoice

GST e-invoice is an electronic version of the invoice generated by a supplier and issued to the recipient. This electronic invoice has a standardized format and is authenticated by the GST Network (GSTN) system. The GST e-invoice system is a part of the government’s initiative to digitize the tax system and make it more efficient and transparent.

In simple terms, when a supplier generates an invoice for the goods or services provided to the buyer, it is uploaded to the GST e-invoice portal. The portal then generates a unique Invoice Reference Number (IRN) and a QR code for that particular invoice. The supplier can then issue the e-invoice to the buyer, who can use the QR code to authenticate the invoice.

The GST e-invoice system was introduced in India in October 2020 and is mandatory for businesses with an annual turnover of Rs. 50 crore or more. From 1st April 2021, businesses with an annual turnover of Rs. 10 crore or more are also required to generate e-invoices for all B2B transactions. The system is expected to bring greater transparency and efficiency in the tax system by reducing the scope for tax evasion and eliminating the need for manual data entry.

The GST e-invoice system is integrated with other tax-related systems, such as the GSTN, the e-way bill system, and the GST return filing system. This integration ensures that the information on invoices is accurately recorded in the tax system, making it easier for businesses to file their returns and comply with the GST regulations.

The e-invoice system also has several other benefits for businesses, including faster processing of invoices, reduced errors, improved cash flow management, and better credit management. In addition, the system allows businesses to track their invoices in real-time and receive alerts for any discrepancies or errors.

Advantages of GST eInvoice

The GST e-invoice system offers several advantages to businesses, including:

Increased Efficiency: The e-invoice system automates the invoice generation process, which saves time and reduces errors. The system also integrates with other tax-related systems, such as the GSTN, e-way bill system, and GST return filing system, which reduces duplication of work and improves overall efficiency.
Reduction in Errors: Since the e-invoice system generates invoices automatically, there is less scope for human errors such as incorrect data entry or calculation errors. This reduces the chances of rejections and makes the entire process smoother.
Improved Cash Flow Management: The e-invoice system provides real-time tracking of invoices, which helps businesses manage their cash flow better. They can track the status of their invoices and receive payment in a timely manner, which helps them manage their finances more efficiently.
Better Credit Management: The e-invoice system provides businesses with accurate and timely information about their invoices, which helps them manage their credit better. They can track their invoices and follow up with customers in case of delays in payment.
Reduced Compliance Burden: The e-invoice system reduces the compliance burden on businesses by automating the invoice generation process and integrating with other tax-related systems. This reduces duplication of work and saves time.
Transparency: The e-invoice system provides greater transparency in the tax system by reducing the scope for tax evasion. The system provides real-time tracking of invoices, which helps prevent fraud and makes the overall tax system more transparent.
Cost Savings: The e-invoice system eliminates the need for paper-based invoices, which reduces printing and stationery costs for businesses. It also reduces the need for manual data entry, which saves time and reduces the chances of errors.

Overall, the GST e-invoice system offers several advantages to businesses, including increased efficiency, improved cash flow management, better credit management, reduced compliance burden, and transparency in the tax system.

Key Concepts of eInvoicing	Explanation
Generating eInvoice	GST eInvoice is a process where the taxpayer generates a unique Invoice Reference Number (IRN) for each invoice and mentions it on the invoice issued. It is not an invoice generated on the Government Portal.
Invoice Reference Number (IRN)	Invoice Reference Number is a unique number provided by the GST Invoice Registration Portal on successful upload of an eInvoice. The supplier must mention this number on the invoice to comply with eInvoicing regulations.
eInvoice Format	There is no specific format for eInvoice provided by the GSTN. Under eInvoicing, certain data in the GST invoice will be transmitted to the GSTN Invoice Registration Portal (IRP) electronically, and an Invoice Reference Number will be generated along with a QR code. The QR code needs to be printed on the invoice generated by the supplier.
Invoice Registration Portal (IRP)	Invoice Registration Portal (IRP) or eInvoice Registrar is the platform issuing the Invoice Reference Number. NIC has been proposed as the first IRP, and more IRPs will be added to increase availability and speed as the number of taxpayers under eInvoicing increases.

eInvoicing Implementation Date

The implementation date for eInvoicing in India varies depending on the turnover of the business. For businesses with an annual turnover of more than Rs. 500 crore, eInvoicing was made mandatory from October 1, 2020. For businesses with an annual turnover of Rs. 100 crore or more, eInvoicing became mandatory from January 1, 2021. For businesses with an annual turnover of less than Rs. 100 crore, eInvoicing was made mandatory from April 1, 2021. However, there were extensions given in certain cases due to the COVID-19 pandemic.

HOW TO GENERATE GST eInvoice:

Generating GST eInvoice involves the following steps:

Ensure that you have a GSTIN (Goods and Services Tax Identification Number), which is a unique identification number given to businesses registered under GST.
Prepare the invoice in the format that is currently used by your business. There is no specific format for eInvoice that has been provided by the GSTN. However, it is important to include all the mandatory fields required by the GST invoicing rules.
After preparing the invoice, upload it to the Invoice Registration Portal (IRP) using the API or the Web-based system provided by the IRP. The IRP will validate the invoice and generate a unique Invoice Reference Number (IRN) for the invoice. The IRP will also generate a QR code containing important details of the invoice.
The IRN and QR code need to be downloaded and printed on the invoice. The IRN is a mandatory field on the invoice, and the QR code is required to facilitate the automated reading of the invoice by the recipient.
Once the eInvoice is generated and the IRN and QR code are printed on the invoice, the invoice can be shared with the recipient through email or any other electronic means.

It is important to note that generating eInvoices is not a one-time process. Every invoice issued by the supplier needs to go through this process to obtain a unique IRN and QR code. The same process needs to be followed for all business-to-business (B2B) transactions, exports, and special economic zone (SEZ) supplies. However, certain transactions such as business-to-consumer (B2C) transactions and those covered under the reverse charge mechanism (RCM) are exempted from eInvoicing.

Generating GST eInvoice involves the following steps:

Ensure that you have a GSTIN (Goods and Services Tax Identification Number), which is a unique identification number given to businesses registered under GST.
Prepare the invoice in the format that is currently used by your business. There is no specific format for eInvoice that has been provided by the GSTN. However, it is important to include all the mandatory fields required by the GST invoicing rules.
After preparing the invoice, upload it to the Invoice Registration Portal (IRP) using the API or the Web-based system provided by the IRP. The IRP will validate the invoice and generate a unique Invoice Reference Number (IRN) for the invoice. The IRP will also generate a QR code containing important details of the invoice.
The IRN and QR code need to be downloaded and printed on the invoice. The IRN is a mandatory field on the invoice, and the QR code is required to facilitate the automated reading of the invoice by the recipient.
Once the eInvoice is generated and the IRN and QR code are printed on the invoice, the invoice can be shared with the recipient through email or any other electronic means.

IRN

IRN or Invoice Reference Number is a unique identifier assigned to each invoice that is generated under the GST e-Invoicing system. It is a mandatory field in every e-Invoice and is issued by the Invoice Registration Portal (IRP) after validating the invoice details uploaded by the supplier.

The IRN is a 64-character hash value that is generated using a combination of the supplier’s GSTIN, invoice number, financial year, and a unique document number. This ensures that each invoice has a unique identifier and cannot be duplicated.

The IRP checks the validity of the invoice and ensures that it conforms to the prescribed format and contains all the mandatory details. The IRP also checks whether the invoice has already been uploaded or whether the IRN has already been generated for the same invoice. Once the validation is successful, the IRP generates the IRN and digitally signs the invoice.

The IRN has to be printed on the invoice along with the QR code that is also generated by the IRP. The QR code contains all the details of the e-Invoice and can be scanned by the recipient to read the invoice details electronically.

The IRN is important as it ensures that each invoice is unique and cannot be duplicated or altered. It also ensures that the invoice details are accurate and complete, reducing the chances of any errors or discrepancies.

The IRN is a critical component of the GST e-Invoicing system and plays an important role in ensuring compliance with GST regulations. It is mandatory for all e-Invoices generated under the GST e-Invoicing system to have a valid IRN, and failure to comply with this requirement can result in penalties and fines.

eInvoice QR Code:

The e-Invoice QR code is a machine-readable code that contains all the details of the e-Invoice in a structured format. It is generated by the Invoice Registration Portal (IRP) and has to be printed on the invoice along with the Invoice Reference Number (IRN).

The QR code contains the following details:

GSTIN of the supplier
GSTIN of the recipient
Invoice number
Invoice date
Invoice value (net of taxes)
Number of line items
HSN code of the main item (if applicable)
Unique Invoice Reference Number (IRN)
Hash value of the IRN

The QR code is designed to facilitate the automated reading of the e-Invoice by the recipient using a QR code scanner. This ensures that the invoice details can be read accurately and quickly, reducing the chances of any errors or discrepancies.

The e-Invoice QR code is also important for compliance purposes. It helps the tax authorities to verify the authenticity of the e-Invoice and ensures that the invoice details have not been tampered with or altered in any way. The QR code can be used to retrieve the invoice details from the GSTN portal and can be used as evidence in case of any disputes or legal proceedings.

GST eInvoice Format	The format for the GST eInvoice is similar to the existing GST invoice format. The Invoice Reference Number (IRN) is not required to be written by the seller, but will be included in the QR code provided by the Invoice Registration Portal. It is recommended to make a digitally signed QR code as proof of registration of the invoice and print it on the invoice issued by the business.
Time Limit for Generating eInvoice	The time limit for generating an eInvoice will be notified by the government. Without registration of an invoice with the Invoice Registration Portal and generation of QR code, the invoice will not be valid. E-invoicing must be completed before the movement or delivery of goods/services or filing of GST returns.
Cancellation of eInvoice	An eInvoice can be fully cancelled within 24 hours on the Invoice Registration Portal. After 24 hours, cancellation can be done on the GST Portal before filing of GST return. Once an eInvoice is cancelled, the same invoice number cannot be used again to generate another invoice.
Amendment of eInvoice	Amendments to eInvoice can be done on the GST Portal. All amendments to the eInvoice generated on the Invoice Registration Portal can be done only on the GST Portal. An amended invoice, if sent again to the Invoice Registration Portal as a JSON file, will be rejected as the IRN will be duplicate.