E- Invoicing is a new concept in GST which was introduced in GST council in its 35th meeting.
To make the GST invoice more authentic document and to stop malpractices related to it, concept of E invoice is introduced
What is e invoice in GST?
E invoicing is a system in which a supplier uploads an invoice in GST portal, against which identification number will be issues for each invoice uploaded in IRP (Invoice registration portal).
The details and information of the uploaded invoice would be provided to e-way bill portal as well as GST portal.
This will help the suppliers as manual entry of sales would not be required in Form GSTR-1 and filling up of information in e-way bill portals as E-invoice is uploaded.
E-invoicing is not invoice generation portal, it is only a reporting portal. Invoice will have to be generated by supplier from his current software like tally, ERP etc.
Benefits of E-Invoicing
Some of the benefits of E-Invoicing are:
- Invoices can be tracked on real-time basis
- Reduce the errors , as manual intervention will reduce
- Input tax credit can be taken on a real-time basis as supplier will issue an e-invoice
- E-Invoice can be read by any software , and hence would reduce the errors during data entry
- Tax authorities would also be satisfied as they can get information rapidly, thus leading to lesser intervention.
- Data will be reconciled faster leading to reduced mismatch errors
- Using E-invoice data, E-way bill can be generated faster as part –A of the form will get an auto-fill
- Various GST returns will get auto populated like many fields in GSTR 1 will get auto filled.
Applicability of E-invoice
E-invoice system would be applicable to every tax payer whose aggregate annual turnover exceeds Rs. 500 crore in a financial year.
Aggregate turnover here means turnover that is arrived by adding turnovers of all GSTN number issued under a single PAN number.
E-invoicing will get Implemented from 1st of October 2020.
Exemptions from e invoice under GST
- SEZ are exempted by notification no. 61/2020 central tax dt 30-07-2020
- Insurer or banking or financial institutions
- GTA transporting goods by road
- Passenger transport service
- Services of admission to exhibition of cinematograph films in multiplex screens
Process of generating an E-invoice
- The taxpayer should have a software that generates an E- invoice as per E-invoicing standard issued by the CBIC
- Taxpayer can download the generation tool for uploading invoices. This is to generate JSON files that can be uploaded on E-invoice portal called IRP (Invoice registration Portal)
- IRP will give signed e-invoice with unique “invoice reference number” along with QR code.
- Then, the invoice can be issued to receiver (with QR code).
- A GST invoice will be valid only with a valid IRN.
- IRP will then send the information pertaining to the E-Invoice to GST portal & to the E-way bill portal.
Information required to generate an E-Invoice
- Supplier GSTIN,
- Supplier’s invoice number
- Financial year (YYYY-YY).
- Details of supplier & recipient
- Type of supply
- If it is B2B or B2C
- If it attracts RCM
- If it attracts TDS/TCS
- If it is an Export, Supply made to SEZ or Deemed export
- Details of supply
Can we Cancel E-invoice?
Yes, we can cancel E-invoice within prescribed time i.e 24 hours.
Which supplies covered for E invoice?
All B2B transactions, Supplies to SEZ’s and all exports covered under E invoice system.
When Coming to Force 1st October 2020
Type of documents to be uploaded for E-invoice?
Invoice, Debit & Credit Note
Fields to be auto populated in GSTR 1 by e-invoice
GSTR Table Description
4A, 4B, 4C, 6B, 6C
Credit/Debit Notes (Registered)
HSN-Wise summary of outward supplies
Who all are IRN Generators
Supplier/seller and e commerce operator
Types of transactions transaction included in E invoice
- All B to B transactions including B to G
- Export all types
Maximum number of lines supported by e invoice
Currently it supports 1000 lines. If you need more, email at email@example.com
How to know your e invoice status
Visit this website to check e invoice status under GST
GST e-invoice Notifications
Find here all notifications related to e invoice in GST
Updates and Notifications
Taxpayers who have started generating e invoice from 1st Oct 2020, the auto-population of e invoice data into GSTR 1 has started from 3rd Dec 2020. Basically it reflects in T +3 days time. The corresponding reflection of such invoice in GSTR 2A, 2B, 4A, 6A has also started.