It is a well-known fact that e-invoicing is going to be mandatory from October 1, 2020, and companies with over 500 crore turnover in any of the preceding financial year from 2017-2018 onwards will have to implement the norms set by the government. The E-Invoicing API specification version 1.03 was released on 5th August on sandbox for testing and the production environment was made live from 15th August 2020.
Under the e-invoicing mandate, invoices that the taxpayers generate need to be registered on the official e-invoicing portal. This portal is known as the Invoice Registration Portal (IRP) which will help taxpayers generate the invoice generation number (IRN) which will be unique for every single invoice that is being generated. As a step ahead, the Government has streamlined the generation of E-way Bill and E-Invoicing from the same portal.
E-invoicing for E-commerce Operators
E-commerce operators are allowed to generate IRN on behalf of a supplier. However, it is important that the e-commerce platform should mandatorily be registered as e-commerce operator under GST. The latest update on the GST Portal is that E-Commerce Operators have been enabled to register and test the APIs on the sandbox system. Services provided by E-commerce come under RCM i.e. Reverse Charge Mechanism. In order to know whether these service invoices require IRN or not turnover of the commerce operator is important. You can read more about E-invoicing and RCM here. The transactions made through e-commerce platform are normal supplies made by suppliers and hence in order to know whether e-invoicing is required for these or not supplier’s turnover is important. The overall principle of generating an IRN still remains the same i.e for B2C transactions IRN generation is not applicable.
Points To Note:
- E-commerce acts as a market place.
- A supplier who is selling the goods needs to have a turnover which is over 500 crore. Then the supplier can generate an e-invoice or the e-commerce platform can generate it on his/her behalf.
For Example: If Mr X purchased goods from a company say Bajaj via the e-commerce platform Amazon. Here, Amazon sends MR. X an invoice. Invoice number generation (IRN) and the e-invoicing process is between Bajaj and Amazon. (Amazon provides suppliers with some interface for their invoice management)
Either way, Bajaj or Amazon can create IRN. Both of them can be onboarded on any e-invoicing software like IRIS Onyx. Amazon’s GSTIN will have to be used as value for E-commerce GSTIN field and in this transaction, Bajaj’s GSTIN will be used in supplier GSTIN.
- The e-commerce platform selling their own personal branded goods.
For Example: If Amazon owns the goods and are selling their own brands then they are in the role of suppliers here and do not act as e-commerce operators. If Amazon’s turnover is more than 500 crore (overall operations and not just supply of own goods) then these invoices will also be covered under e-invoicing.
- E-commerce operator issuing invoices to the suppliers who are using their market place.
For Example: In the above case, let’s consider the e-commerce operator is again Amazon. Now, the turnover of Amazon (overall operations) needs to be checked. For such transactions, the role of Amazon again is of the supplier i.e. providing services. Thus here too if turnover is more than 500 crores then Amazon will have to generate IRN for such invoices also.
- In case the e-commerce GSTIN is used, the data will be accepted by IRP and it will also flow to GSTR-1 of the seller. The auto population of GSTR1 is still under development stage from GSTN end.
Scope of Access to IRNs generated by e-Commerce operator and Supplier
For more information on the APIs available for ecommerce operators you can refer to document on e-invoice portal
IRIS Onyx – A Complete E-invoicing Solution
IRIS Onyx is an automated, integrated and seamless e-invoicing software!
Onyx is a cloud-based solution that can integrate with your billing systems seamlessly in multiple ways and generate IRN with zero disruption to your business. It is a one-stop platform to view, share and collaborate with your customers and suppliers alike while managing the entire communication with the GST systems in a hassle-free manner.
IRIS Onyx helps with both IRN along with E-WAY BILL generation seamlessly and makes the entire process smooth and hassle-free!