E-invoice New API Specification has been released today in line with the updated e-Invoice standard fields released early Feb 2020.
In a move to check tax evasion and make data inter-operable between entities Government is mandating e-invoice standard in India from April 2020. Under this standard companies with turnover of more than 100 CR are required to register all their invoices with the government portal and generate Invoice Reference Number (IRN).
The GSTN systems are in place and voluntary testing APIs were made available for select taxpayers and GSPs in the first week of Jan 2020.
Given that it was a testing phase, changes in e-invoice API specification were anticipated.
GSTN released updated e-invoice standard fields early Feb 2020.
New e-invoice API Specifications in line with GSTN released standard fields have been now released. The new version of APIs are expected to be released by 7th March 2020.
Key changes in New E-Invoice API Specification and its impact
- Compared to the earlier API version, the new version has considerable changes in terms of data fields and its technical specification. However, all the changes in API result in close alignment of the e-invoice standard released by GSTN, which eventually could get notified.
- The new specifications provide for E-way Bill generation which will enable auto-generation of E-way Bill, subject to providing the relevant data. On successful E-way bill generation, the details will be returned along with IRN and QR code
- Additional API for generating EWB using IRN has also been provided. If E-way bill details are not provided during generating IRN, then this new API can be used
In addition to field level changes, there are some validation rules worth noting, for the impact it could have on the business processes –
The Document Date can be yesterday or today’s date.
|The maximum time gap between invoice generation and getting IRN can be at most 1 day. Back-dated or IRN for earlier dated invoices will not be allowed|
Document number should not be starting with 0, / and -. Also, alphabets in document number should not have alphabets in lower cases. If so, then request is rejected.
Revisit the invoice numbering sequence.
GST Invoicing rules however do not have any such conditions.
|‘Reverse Charges’ can be set as ‘Y’ in case of B2B invoices only and tax is being paid in reverse manner as per rule. Even in the case of Reverse Charged invoices, the seller has to generate the IRN.||
Responsibility of Invoice and IRN generation in case of reverse charge transactions for B2B, is with the supplier of such goods and services.
In case the supplier is SEZ unit, then he cannot generate e-Invoice.
|Only suppliers can initiate IRN generation. Hence if SEZ cannot generate e-invoice, then from purchase side invoices received from SEZ will not have any IRN|
|e-invoice(IRN) cannot be re-generated for the cancelled e-invoice(IRN) also||
Revisions to invoice need to managed through Debit or Credit Note.
Cancellation of IRN is equivalent to cancellation of invoice, which makes the invoice void for any further actions
IRN cannot be cancelled, if the Valid/Active E-way Bill exists for the same.
|IRN and E-way Bill are tightly integrated and taxpayers need to accordingly align their systems.|
|IRN should not be passed as part of the request; it is generated by the e-Invoice system and sent as response.||IRN will be generated by IRP only. Taxpayers systems, if are generating IRN, should not be sent to IRP|
Separate validation rules for e-way bill generation are also provided.
We are doing detailed impact analysis of the changes and will keep you posted on our observations.
The new specifications are available at https://einv-apisandbox.nic.in/index.html
You can read more about e-invoicing here: e-Invoicing becomes mandatory from 1st April 2020