GST e-Invoicing – Concept, Process & Guidance

  • Blog|GST & Customs|
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  • 3 Min Read
  • By Taxmann
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  • Last Updated on 1 October, 2021

1. Background of GST e-Invoicing

GST E-invoicing is a rapidly expanding technology and today’s business models are evolving gradually from conventional paper-based systems to digital processing. Electronic Invoicing is a best practice followed internationally by various tax administrations and several countries have adopted Electronic Invoicing as part of their national digitalization programs.

Since opting of the E-invoicing procedure by the business entities, it helps in cost savings, efficiency gains, many private businesses are turning themselves to E-Invoice. Thus, digital transformation is no longer just an option, but an eventuality.

2. India’s GST E-Invoicing

Accordingly, Indian Government is also looking forward to align the compliance process with private business practices with this transformation requiring organizations to exchange and share copies of invoices electronically with effect from 1st October, 2020 for taxpayers whose aggregate turnover exceeds INR 500 crore in a FY for B2B (including exports) segment covering documents like tax invoice, debit note and credit note. The implementation has been planned in phased manner based on aggregate turnover limit and type of transaction.

Exemption has been given qua business and not qua taxpayer to SEZ Unit, insurer, banking company, financial institution including NBFC, GTA, passenger transport service and admission to exhibition of cinematograph films in multiplex screens. Currently, the option is not available for B2C supplies and in fact taxpayer cannot opt voluntarily for e-invoice.

3.GST E-Invoicing Process

E-invoicing mechanism is the process wherein details of the invoices has to be sent for registration on Invoice Reference Portal (IRP) i.e. a passthrough between seller and GST System, in a standard format for which e-schema has been notified, in return of which seller gets an Invoice Reference Number (IRN), a digitally signed invoice by IRP and a QR Code in JSON. QR code eliminates the need to carry physical invoice as a mobile application can scan QR Code which in result will display critical information of the invoice.

Amongst numerous advantages, it is very significant to note that GSTR 1 and GSTR 2A will get auto-populated along-with the facility to directly generate e-waybill thereby reducing duplication work. With the advent of e-invoicing, the transaction will get reported to the Government at the very initial stage of the transaction rather than at the end of the tax payer in the form of statement/return. Besides it will also act as a deterrent to fake invoicing.

Government, GSTN, NIC, Professional bodies and all other stakeholders are constantly taking efforts for making the implementation of e-invoicing successful in respect of which meeting with the relevant stakeholders, outreach programs, seminars, webinars, etc. are regularly held to understand the practical difficulty and concerns for which pragmatic steps are taken. The information in regard to the same is disseminated through the IRP portal, GST portal, e-invoicing API portal, etc.

4. Taxmann’s Book on GST E-Invoicing

GST e-Invoicing – Concept, Process & Guidance

Taxmann’s GST E-Invoicing Book Purchase Now

Taxmann’s book on GST E-Invoicing, is a comprehensive guide in understanding the backgroundconceptsissues involved and smooth implementation of ‘GST E-Invoicing’, with effect from 1st October 2020. It explains everything about e-invoicing along with relevant illustrations, tables and diagrams.

The book serves as a ready referencer for all the professionals, technical experts and project-in-charge involved in handling execution of e-invoicing module in the existing accounting software. Explanation is in complete sync with the current features available at the GST e-invoicing portal, GST e-invoice API portal as well as the GST Common portal.

The present publication is the 2nd Edition, as amended up to 25th August 2020, with the following noteworthy features:

  • Tabular presentation has been made for ascertaining the responsibility of each stakeholder involved
  • Situations and their solutions have been given at appropriate places
  • Pictorial representations have been made for better understanding
  • Impact on other verticals of the business have been incorporated
  • Process flow along-with validations done at IRP portal is also given
  • The book incorporates the following:
    • Background and concept of electronic invoicing in the form of capsules
    • Need of E-Invoicing
    • Mechanism of E-Invoicing
    • E-Invoice creation and IT implementation
    • Amendment, cancellation & miscellaneous topics of E-Invoicing
    • E-Invoicing schema/API – Change in IT system
    • Time & manner of issuance – Invoice vis-à-vis E-Invoice
    • Tax Invoice vis-à-vis E-Invoice
    • Bill of supply vis-à-vis E-Bill of supply
    • Debit-credit note vis-à-vis E-Debit-credit note
    • Receipt, refund and payment voucher
    • ISD invoice and miscellaneous documents
    • Quick response (QR) code
    • Annexures
      • Relevant Sections & Rules
      • Relevant Notifications
      • Concept Note on E-Invoice Messaging Flow
      • FAQs on Signed QR Code
      • Signed QR Code in E-Invoicing System

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

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