E-invoicing under GST – What is e-Invoicing? Applicability.
What is an E-invoice?
E-Invoicing is a system that allows the Invoice Registration Portal (IRP) to authenticate B2B invoices electronically. An e-invoice, or electronic invoice, is a digital document that is exchanged between a supplier and buyer and validated by the government tax portal which is www.einvoice1.gst.gov.in. E-invoicing is the proposed system where business-to-business (B2B) invoices are digitally prepared in an e-invoicing format and authenticated by the Goods and Services Tax Network (GSTN). This system ensures that a common format is followed by all businesses before reporting invoices to the GST portal.
The transportation of goods from one place to another is facilitated by the filing of ‘E-Way Bills’ on the common GST portal. Similarly, the GST Council, in its 35th meeting, has decided to implement a system of e-Invoicing, which will be applicable to specified categories of persons. The CBIC formally notified the system of e-Invoicing under GST vide Notification No. 68/2019 – Central Tax, which inserted sub-rules (4), (5) and (6) under rule 48 of the CGST Rules, 2017 for the implementation of e-Invoicing.
Who is eligible for E-invoice?
The GST Council, in its 39th meeting, has decided to implement a system of e-invoicing, which will be applicable to businesses having a turnover of more than 500 crores, effective from 1st October 2020, and to businesses having a turnover of more than 100 crores, effective from January 1, 2021, and now businesses having a turnover of more than 50 crores, effective from April 1, 2021.
Facilities on einvoice1.gst.gov.in or Tally Prime.
The following facilities or functions are available on the e-invoice portal or Tally Prime:
Registration of taxpayer into the e-invoicing system
Generation of unique Invoice Reference Number (IRN) using the bulk upload option
Tracking/verifying e-invoice details using IRN
Search for any taxpayer, Pincode, goods or services, signed e-invoice, or master codes.
Cancellation of IRN
Printing e-invoices
Generating MIS reports
Authorising a sub-user to generate IRN, cancel IRN or generate reports relating to IRN.
What are the mandatory fields of an e-invoice?
The following fields must be compulsorily be declared in an E-invoice:-
| S.No. | Name of the field | List of Choices/ Specifications/Sample Inputs | Remarks |
|---|---|---|---|
| 01 | Document Type Code | Enumerated List such as INV/CN/DN |
Type of document must be specified |
| 02 | Supplier_Legal Name | String Max length: 100 | The legal name of the supplier must be as per the PAN card |
| 03 | Supplier_GSTIN | Max length: 15 Must be alphanumeric |
GSTIN of the supplier raising the e-invoice |
| 04 | Supplier_Address | Max length: 100 | Building/Flat no., Road/Street, Locality, etc. of the supplier raising the e-invoice |
| 05 | Supplier_Place | Max length: 50 | Supplier’s location such as city/town/village must be mentioned |
| 06 | Supplier_State_Code | The enumerated list of states | The state must be selected from the latest list given by GSTN |
| 07 | Supplier Pincode | Six digit code | The place (locality/district/state) of the supplier’s locality |
| 08 | Document Number | Max length: 16 Sample can be “ INV/21-22/0001” |
For unique identification of the invoice, a sequential number is required within the business context, time-frame, operating systems and records of the supplier. No identification scheme is to be used |
| 09 | Preceeding_Invoice_Reference and date | Max length:16 Sample input is “ INV/21-22/0001” and “16/04/2021” |
Detail of original invoice which is being amended by a subsequent document such as a debit and credit note. It is required to keep future expansion of e-versions of credit notes, debit notes and other documents required under GST |
| 10 | Document Date | String (DD/MM/YYYY) as per the technical field specification |
The date when the invoice was issued. However, the format under explanatory notes refer to ‘YYYY-MM-DD’. Further clarity will be required. Document period start and end date must also be specified if selected. |
| 11 | Recipient_ Legal Name | Max length: 100 | The name of the buyer as per the PAN |
| 12 | Recipient’s GSTIN | Max length: 15 | The GSTIN of the buyer to be declared here |
| 13 | Recipient’s Address | Max length: 100 | Building/Flat no., Road/Street, Locality, etc. of the supplier raising the e-invoice |
| 14 | Recipient’s State Code | Enumerated list | The place of supply state code to be selected here |
| 15 | Place_Of_Supply_State_ Code | The enumerated list of states | The state must be selected from the latest list is given by GSTN |
| 16 | Pincode | Six digit code | The place (locality/district/state) of the buyer on whom the invoice is raised/ billed to must be declared here if any |
| 17 | Recipient Place | Max length: 100 | Recipient’s location (City/Town/Village) |
| 18 | IRN- Invoice Reference Number | Max length: 64 Sample is ‘a5c12dca8 0e7433217…ba4013 750f2046f229’ |
At the time of registration request, this field is left empty by the supplier. Later on, a unique number will be generated by GSTN after uploading of the e-invoice on the GSTN portal. An acknowledgement will be sent back to the supplier after the successful acceptance of the e-invoice by the portal. IRN should then be displayed on e-invoice before use. |
| 19 | ShippingTo_GSTIN | Max length: 15 | JUSTIN of the buyer himself or the person to whom the particular item is being delivered to |
| 20 | Shipping To_State, Pincode and State code | Max length: 100 for state, 6 digit Pincode and enumerated list for code |
State pertaining to the place to which the goods and services invoiced were or are delivered |
| 21 | Dispatch From_ Name, Address, Place and Pincode | Max length: 100 each and 6 digit for Pincode |
Entity’s details (name, and city/town/village) from where goods are dispatched |
| 22 | Is_Service | String (Length: 1) by selecting Y/N | Whether or not the supply of service must be mentioned |
| 23 | Supply Type Code | The enumerated list of codes Sample values can be either of B2B/ SEZWP/S EZWOP /E XP WP/EXP WOP/DE XP |
Code will be used to identify the type of supply such as business to business, business to consumer, supply to SEZ/Exports with or without payment, and deemed export. |
| 24 | Item Description | Max length: 300 The sample value is ‘Mobile’ The schema document refers to this as the ‘identification scheme identifier of the Item classification identifier’ |
Simply put, the relevant description generally used for the item in the trade. However, more clarity is needed on how it needs to be described for every two or more items belonging to the same HSN code |
| 25 | HSN Code | Max length: 8 | The applicable HSN code for particular goods/service must be entered |
| 26 | Item_Price | Decimal (12,3) Sample value is ‘50’ | The unit price, exclusive of GST, before subtracting item price discount, can not be negative |
| 27 | Assessable Value | Decimal (13,2) Sample value is ‘5000’ | The price of an item, exclusive of GST, after subtracting item price discount. Hence, Gross price (-) Discount = Net price item, if any cash discount is provided at the time of sale |
| 28 | GST Rate | Decimal (3,2) Sample value is ‘5’ | The GST rate represented as a percentage that is applicable to the item being invoiced |
| 29 | IGST Value, CGST Value and SGST Value Separately | Decimal (11,2) Sample value is ‘650.00’ | For each individual item, IGST, CGST and SGST amounts have to be specified |
| 30 | Total Invoice Value | Decimal (11,2) | The total amount of the Invoice with GST. Must be rounded to a maximum of 2 decimals |
What kind of invoices eligible for E-invoice?
e-Invoicing is a system that allows the Invoice Registration Portal (IRP) to authenticate B2B invoices, credit Notes, debit note(Transactions that affect your sales account) and all kinds of export invoices(Export Taxable, Export Lut Bond, Export exempt and nil rated) electronically.
When will e-Invoicing get implemented?
The first phase of e-Invoicing was implemented from 1st October 2020 for taxpayers with an aggregate turnover exceeding Rs.500 crore. From 1st January 2021, e-Invoicing was extended to businesses with an aggregated turnover exceeding Rs.100 crore and now businesses having a turnover of more than 50 crores, effective from April 1, 2021. The aggregate turnover will include the turnover of all GSTINs under a single PAN, across India.
How does the e-invoice look like?
The e-invoice format notified is as follows:
Frequently Asked Questions
[accordion] [item title=" To whom will e-Invoicing apply?"]The e-Invoicing system shall apply to the GST registered persons whose aggregate turnover in the financial year exceeds Rs.50 crore. However, exceptions include Special Economic Zones (SEZ) units, insurance, banking, financial institutions, NBFCs, GTA, passenger transportation service and sale of movie tickets.[/item] [item title="What are the types of documents that are to be reported into the IRP"]The documents that will be covered under the e-Invoicing system are as follows-- Invoices by the Supplier
- Invoices by the Supplier
- Credit Notes by the Supplier
- Debit Notes by the Recipient
- Any other document as notified under GST law to be reported as e-invoice by the creator of the document
- The first one is using the offline/excel tool
- The second one is using the API mode – directly or through GSPs.
- Web-based access for generation of IRN using the offline/excel based tools.
- API based access for generation of IRN using the APIs directly or through GSPs.
- GSTIN of Supplier
- GSTIN of Recipient
- Invoice number as given by Supplier
- Date of generation of invoice
- Invoice value (taxable value and gross tax)
- The number of line items.
- HSN Code of the main item (the line item having the highest taxable value)
- Unique Invoice Reference Number (IRN)
- Date of generation of IRN
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