E- Invoice in under GST

E-invoicing under GST, Applicability, eligibility, E-Invoice IRN, mandatory fields of an e-invoice, invoices eligible for E-invoice

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.

e-invoice-pic

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:
E-invoice-sample

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-
  1. Invoices by the Supplier
  2. Invoices by the Supplier
  3. Credit Notes by the Supplier
  4. Debit Notes by the Recipient
  5. Any other document as notified under GST law to be reported as e-invoice by the creator of the document
[/item] [item title="What are the methods/modes of e-invoice generation?"]There are two modes/methods of e-invoice generation.
  1. The first one is using the offline/excel tool
  2. The second one is using the API mode – directly or through GSPs.
[/item] [item title="What are the access mechanism for the e-invoicing system?"]There are two access mechanism for the e-invoicing system.
  1. Web-based access for generation of IRN using the offline/excel based tools.
  2. API based access for generation of IRN using the APIs directly or through GSPs.
[/item] [item title="How to know the enablement of e-invoicing system for my Company?"]There is an option in the https://einvoice1.gst.gov.in portal under the search menu as ‘Status of Tax Payer’. Select and enter the GSTIN and see the enablement status for the entered taxpayer.[/item] [item title="My company aggregate turnover is more than Rs 50.00 Crores, but I have not been enabled. How to get enabled?"]There is an option in the https://einvoice1.gst.gov.in portal under the registration menu as ‘e-Invoice Enablement’. Select and enter the any GSTIN of the company and get the OTP authenticated and enter the turnover with related financial year and submit. You are enabled for the e-invoicing and login and register. If you want sandbox access, you can try on the sandbox after one day.[/item] [item title="What is the common portal for reporting invoices and obtain IRN/QR Code?"]The common portal for the generation of e-invoice is https://einvoice1.gst.gov.in[/item] [item title="I have already registered in GST Portal. Whether I need to register again on the E-invoice system Portal?"]Yes. All the registered users under GST who wish to generate IRN need to register on E-invoice system separately using his GSTIN. Once GSTIN is entered, the system sends an OTP to his registered mobile number registered with GST Portal and after authenticating the same, the system enables him to generate his/her username and password for the E-invoice system. After the generation of the username and password of his/her choice, he/she may proceed to make entries to generate IRN.[/item] [item title="I have already registered in EWB Portal. Whether I need to register again on the E-invoice Portal?"]No, Users who are already registered on the e-way bill portal need not again register on the e-invoice system. User can use EWB login credentials to login at the e-invoice system.[/item] [item title="What is Invoice Reference Number (IRN)?"]The Invoice Reference Number (IRN) is a unique number (also known as hash) generated by the e-invoice system using a hash generation algorithm. For every document viz., an invoice or debit or credit note to be submitted on the e-invoice system, a unique 64-character Invoice Reference Number (IRN) shall be generated which is based on the computation of hash of GSTIN of supplier of document (invoice or credit note etc.), Year, Document type and Document number. This shall be unique to each invoice and hence will be the unique identity for each invoice for the entire financial year in the entire GST System for a taxpayer.[/item] [item title="Can I generate IRN for an Invoice for which IRN is already generated?"]No, only unique invoice from a taxpayer will be accepted by the e-invoice system. E-invoice system will check in Central Registry of GST system to ensure that same invoice from same supplier pertaining to same financial year is not being uploaded again for generating one more IRN. [/item] [item title="How long will the generated e-invoice be available in the government portal?"]Once the e-invoice system has validated and registered an IRN, it will be made available to the taxpayer for reference on the e-invoice system for only 24 hours.[/item] [item title="Can IRN be deleted or cancelled?"]The IRN, once generated cannot be modified or deleted. However, if IRN is generated with wrong information, it can be cancelled. Once cancelled, the same document (with the same document number) can’t be reported again for the generation of IRN. The cancellation is required to be done within 24 hours from the time of generation.[/item] [item title="If there is a mistake or wrong entry in the e-invoice, what has to be done?"]If there is a mistake, incorrect or wrong entry in the e-invoice, then it cannot be edited or corrected. The only option is to cancel that invoice/IRN and report a new document (with a new number) and generate a fresh IRN. [/item] [item title="What is the meaning of digitally signed QR code?"]The digitally signed QR code of the invoice is one which has been digitally or electronically signed and prepared the QR Code by the IRP after receiving the invoice uploaded by the supplier. That is, the government is authenticating the genuineness of the invoice, by preparing the important information of the invoice in QR Code form and signing it so that its authenticity can be verified offline by anyone using offline tools. This will be helpful for tax officers checking the invoice on the roadside where the Internet may not be available all the time. The web user will get a printable form with all details including QR code. The QR code will consist of the following e-invoice parameters:
  1. GSTIN of Supplier
  2. GSTIN of Recipient
  3. Invoice number as given by Supplier
  4. Date of generation of invoice
  5. Invoice value (taxable value and gross tax)
  6. The number of line items.
  7. HSN Code of the main item (the line item having the highest taxable value)
  8. Unique Invoice Reference Number (IRN)
  9. Date of generation of IRN
[/item] [/accordion]

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