‘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:
Steps for registration on the e-invoice system
In this case, a taxpayer can use the same login credentials to login onto the e-invoice 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.
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.
The documents that will be covered under e-Invoicing system are as follows-
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?
Formats available for bulk e-invoice JSON generation
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).
It contains two worksheets for invoice and items details to be entered separately.
It contains five worksheets for invoice details, items details, payment details, reference details and additional details to be entered separately.
It contains a single worksheet for invoice details, item details, payment details, reference details and additional details to be entered in the same worksheet.