E-INVOICING

E-INVOICING

  • 26 Jun 2021
  • Posted By arkca

‘E-Invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP) to be 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 GSTR-1 return as well as generation of part-A of the e-way bills, as the information is passed directly by the IRP to GST portal.

On 8th March 2021, the CBIC notified that e-Invoicing will be applicable from 1st April 2021 for businesses with a turnover of more than Rs.50 crores (in any financial year from FY 2017-18 onwards, as intimated in Notification No. 5/2021 – Central Tax.

Invoice Registration Portal (IRP)

https://einvoice1.gst.gov.in is the primary website for generating Invoice Reference Number (IRN) for e-invoices.

The following facilities or functions are available on the e-invoice portal:

  • Registration of taxpayer into the e-invoicing system
  • Generation of unique Invoice Reference Number (IRN) using bulk upload option
  • Tracking/verifying e-invoice details using IRN
  • Search for any taxpayer, pincode, goods or services, signed e-invoice, or master codes.
  • Cancellation of IRN
  • Printing e-invoices
  • Generating MIS reports
  • Authorising a sub-user to generate IRN, cancel IRN or generate reports relating to IRN.

 

Steps for registration on the e-invoice system

  1. Visit the IRP portal i.e. https://einvoice1.gst.gov.in
  2. If a taxpayer is registered on the e-way bill portal:

In this case, a taxpayer can use the same login credentials to login onto the e-invoice portal.

  1. If a taxpayer is not registered on the e-way bill portal:

In this case, he/she should have a GSTIN and mobile number registered with the GST system.

In the home page of the portal navigate to

Registration tab                          portal login, click on it.

  1. User has to fill GSTN no. in the required field. And submit
  2. The applicant’s details as per the registered GSTIN will get displayed such as applicant name, trade name, address, mobile number, email ID, etc. as registered on the GST portal.

The user is required to verify these details by clicking on ‘Send OTP’. A one-time password (OTP) will be sent on the registered mobile number. The user should enter this OTP in the registration form and click on the ‘Verify OTP’ button.

  1. Once the OTP has been successfully verified, the system prompts the user to enter a user name of choice (consisting of 6-15 characters) and enter a password, then re-enter the password for confirmation and click on ‘Save’. The user can now log into the e-invoice system using the created credentials.

 

The documents that will be covered under e-Invoicing system are as follows-

 

  • Invoices by the Supplier
  • Credit Notes by the Supplier
  • Debit Notes by the Recipient
  • Any other document as notified under GST law to be reported as e-invoice by the creator of the document

 

E-  invoice  has  many  advantages  for  businesses.    One  such  advantage  is  auto-reporting   of   invoices   into   GST   return   and   auto-generation   of   e-  way  bill  (wherever  required).  Under  e-invoicing,  business  has  to  report  the  B2B  invoice  data  only  once  in  the  e-invoice  form  and  the  same  is  reported  in  multiple  forms  (GSTR-1,  e-way  bill  etc.).  E-way  bill  can  be  auto-generated  using  e-invoice  data.  GSTR-1  can  also  be  auto-populated with the e-invoice data. It will become part of the business process of the taxpayer. Consequently,  there  will  be  a  substantial  reduction  in  transcription  errors  as  same  data  will  get  reported  to  tax department  as  well  as  to  the buyer to prepare his inward supplies (purchase) register.  On receipt of  information  through  GST  System,  buyer  can  do  reconciliation  with  his Purchase Order

 

Cancellation/amendment of reported invoice

Where needed, the seller can cancel IRN for an e-invoice already reported by  reporting  it  on  IRP  within  specified  time.  Amendment  of  e-invoice already uploaded on IRP will be done only on GST portal. Amendment of invoices is not possible through the IRP.

What are the prerequisites to generate an e-invoice?

  • The person generating an e-invoice should be registered on the GST portal and e-invoice or e-way bill portal.
  • There should be a valid document to report, such as an invoice, debit note, or credit note available with him.
  • If the taxpayer is generating e-invoices in bulk, then he should have a valid JSON file as per the e-invoice schema, or should have integrated his ERP system with APIs.

 

Formats available for bulk e-invoice JSON generation

Format A

It contains a single worksheet for invoice and items details to be entered. The user can prepare the JSON file for uploading a large number of e-invoices by a single upload to the Invoice Registration Portal (IRP).

 

  • Businesses who have 1 or 2 items in their invoices can use this format.
  • This format is advisable for invoices with B2B transactions.
  • Details of payment and reference cannot be entered in Format A.

 

Format B

It contains two worksheets for invoice and items details to be entered separately.

 

  • This format is advisable for the businesses having several items in their invoices.
  • As the item details are entered in two different worksheets, the user needs to ensure that every item is referenced with the document number, document type and document date of the invoice.
  • The payment and reference details cannot be entered in Format B.
  • Other information such as details of exports can be entered in the Invoice worksheet itself.
  • If e-way bills need to be generated, then Part-B details can also be entered in the Invoice worksheet.

 

Format C

It contains five worksheets for invoice details, items details, payment details, reference details and additional details to be entered separately.

 

  • This format is advisable for businesses having many items in the invoices with payment details and reference details etc.
  • As the item details are entered in different worksheets, the user needs to ensure that each item is referenced with the document number, document type and document date of the invoice.
  • Other information such as export details can be entered in the Invoice sheet.
  • If an e-way bill is to be generated, then Part-B details of the w-way can also be entered in the Invoice sheet.

Format D

It contains a single worksheet for invoice details, item details, payment details, reference details and additional details to be entered in the same worksheet.

 

  • This format is advisable for businesses having a large number of items in the invoice, having payment details and reference details etc.
  • Other information such as export details can be entered in the Invoice sheet.
  • If an e-way bill needs to be generated, then Part-B details of the e-way bill can also be entered in the Invoice sheet itself.

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