Updated on 10 Nov 2020: E-invoicing is mandatory for taxpayers having aggregate turnover above Rs. 100 Cr from 01st Jan 2021 | GST Notification 88/2020
Updated on 1st Oct 2020: E-Invoice goes LIVE for companies with a turnover more than Rs. 500 CR
Updated on 5th Aug 2020: Version 1.03 of E-Invoice API specification is released for testing on sandbox. The changes are in accordance with the revised version of e-invoice schema- Version 1.1, released via Notification 60/2020 of Central Tax dated 30 July 2020 . For details on changes as per new schema, you can check on our blog E-Invoice LIVE Date: 1st October 2020 – Version 1.1 of E-Invoice Schema Released .
Version 1.03 of E-Invoice API specification is released for testing on 05th Aug 2020 in the sandbox.
Updated on 23 July 2020: Taxpayers with turnover of Rs. 500 cr & above in the FY 2019-20 are mandated to generate e-invoice from October 2020. Login to the e-invoice portal enabled.
Updated on 14 May 2020: Version 1.02 of E-Invoicing API specification were released on 14th May 2020 on sandbox. The specification mostly has changes related to validation and new API for Generate EWB by IRN
Updated on 1st Jan 2020: Voluntary testing of e-invoice sandbox enabled on the portal. Important things to note.
E-invoicing in India went LIVE for B2B transactions from 1st October 2020. Same will be introduced subsequently for all the taxpayers. E-invoicing under GST is a mechanism being introduced to curb tax evasion and enable an invoicing standard in India. With the implementation of E-invoice generation, the GST system shall be able to validate all the B2B transactions electronically and pre-populate the same in taxpayer’s GST return forms, as per the corresponding details.
As per the recommendations of the GST council, the E-invoicing system has 2 aspects i.e.
- Adoption of a standard for the invoice, which will enable standardization and swift data exchange
- Registering the standard invoice with the Government, through Invoice Registration Portal (IRP), which will ensure the authenticity of invoices.
Perks of GST E-invoicing in India
The perks of introducing E-invoice generation under GST include:
- Auto-Populated GSTR 1 (for B2B invoices).
- Auto-populated Part A for Eway Bill generation (taxpayer will have to provide vehicle details in Part B to complete EWB generation)
- Auto-sharing of uploaded invoices (on IRP) with the buyers for reconciliation.
- The system will auto-match input credit liability with output tax.
To know more about e-invoicing mandate:
Beginner’s guide to
e-invoicing mandate in India
7 Steps to E-Invoice Generation
The invoice details need to be verified with the government records and get the unique registration number. Additionally, the supplier/vendor is required to submit these E-invoices on the GSTN portal for the validation purpose, following which, it can be used for return filing and EWB generation. Decoding the entire process of E-invoice generation, right from the invoice creation to sharing the same with buyers (for reconciliation), here is a step-by-step guide for generating a Valid E-invoice:
1.Invoice Creation –
Invoice is created using an accounting or billing software as per the prescribed format for E-invoicing. Clearing the fog about a major misconception surrounding the E-invoice generation, it is not mandatory for a taxpayer to generate E-invoice through the government’s tax portal. In fact, the taxpayer can continue using any accounting software of his preference, with the only necessity being, the software’s ability to generate the invoice in the given e-invoicing format.
2. Invoice Registration Number (IRN) Generation:
Supplier can generate a unique Invoice Reference Number (IRN) using a standard hash-generation algorithm. Generation of IRN by supplier is optional. In absence of IRN, the IRP system of government will generate the same.
3. Upload on Invoice Registration Portal (IRP):
JSON file for each B2B invoice (generated through the accounting software or any third party tool), along with the IRN, if generated is uploaded on the Invoice Registration Portal (IRP)
4. IRP Validation of Invoice Information:
The IRP will validate the generated hash/IRN attached with JSON (if uploaded by the supplier)or generate an IRN and authenticate the file against the central registry of GST for any duplication. The IRN will be the unique identity of the E-invoice for the entire financial year.
5. Digital Signature and QR Code Generation:
Upon successful verification, the invoice will be updated with IRP’s digital signature on the invoice data and a QR code will be added to the JSON file.
6. E-Invoice data transmission to E-Way Bill Portal and GST System:
The uploaded data will be shared with the E-way bill and GST system, which will be used for auto-population of GST Annexures and
7. E-Invoice Receipt back to Supplier’s ERP:
The portal will send the digitally signed JSON along with IRN and QR code back to the seller. The invoice will also be sent to the buyer on their registered email id.
While the E-invoicing system is being introduced to curb tax evasion and simplify GST compliance for a taxpayer, it should be noted that selecting the right invoicing solution can play a crucial role in your compliance journey.
IRIS Onyx, an e-invoicing solution from IRIS GST, is a one-stop platform for you 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.
For any queries or to schedule a demo, connect with us at firstname.lastname@example.org