- Introduction to e-Invoicing
- Implementation & Applicability
- Technical Aspects
- Registration Process
- Cancellation & Modifications
- Specific Scenarios
- E-Way Bill & Related Queries
- Business Benefits
In the most recent update beginning on August 1, 2023, electronic invoicing has become mandatory for all authorized individuals whose total volume (based by PAN) during any previous fiscal year beginning in 2017-18 exceeds 5 millions.
Here’s a list of frequently asked questions about the e-invoicing process under GST.
Introduction to e-Invoicing
- What exactly is e-invoicing under GST?
The phrase “Electronic invoice,” or “e-Invoice,” refers to a process that allows all invoices from business to business to be electronically uploaded and validated by the portal assigned to them. Invoice Registration Portal Invoice Registration Portal verifies the electronic invoice and creates an IRN as well as a QR code that the buyer must add to the invoice prior to printing it or delivering it to
Implementation & Applicability
- How long before e-invoicing will become implemented?
The first version of e-invoice was in effect from the 1st of October 2020 for businesses that had an annual turnover of 500 million. Beginning on January 1, 2021, the e-invoicing system will be in place to companies with a turnover of 100 crores then 50 crores. It is currently available for companies with a turnover greater than 10 crores.
In the latest update, from the 1st of August in 2023 electronic invoicing will be compulsory for all registered businesses that’s total revenue (based by PAN) during any previous fiscal year beginning in 2017-18 exceeds 5 crores.
- Who is eligible for E-invoicing?
Electronic invoicing is applicable to all companies which belong to GST which issue B2B invoicing, in a gradual method as specified by the government. In the present, it is applicable to businesses whose total turnover exceeds 5 crore mark.
- Do you have to pay electronically?
It is a must for all companies that fall under the umbrella of electronic invoices and must create an electronic invoice for all B2B products.
- What is the reason for e-invoices?
To establish a standard format for the manner that the electronic information of an invoice is shared with different systems within the GST ecosystem, ensuring compatibility of the data. After the invoice has been uploaded and validated with the help of IRP it’s shared with GST GST system to file returns as well as with the e-way bills system to assist in making e-way bills.
technical aspects (Fundamentals of electronic invoicing)
- What’s the ID in an e-Invoice?
IRP is a specific portal specifically designed for accepting, validating and authenticate invoices.
- What is an IRN (Invoice Reference Number)?
IRN also referred to by the name of ” Invoice Reference Number” is an unique invoice number that is generated through IRP, the Invoice Register Portal (IRP) after uploading the invoices electronically.
- Can IRNs be generated in the bulk?
Yes you can upload bulk invoices and generate an IRN for every invoice that you upload. TallyPrime is a seamless solution for IRN generation for bulk invoices..
- What is the kinds of documents listed by IRP?
These documents fall under the concept of e-invoice: included by the concept of electronic invoice:
- Invoice by Supplier
- Credit Note by Supplier
- Debit Note by Supplier
- Any other document that is legally required to be recorded by the author of the document.
Register Process (e-invoice method)
- How do I sign up for electronic invoicing?
All taxpayers registered with GST who have to create IRNs must register for e-invoicing IRNs in HTML0using the GSTIN through the I Invoice Register Portal.
Furthermore, taxpayers registered through the e-way bill website are not required to sign-up with the e-invoice system, instead, they are able to make use of your EWB credentials to log in.
- How do I generate an e-invoice within GST portal? GST site?
If you’re new to the internet, you will need to follow the steps below:
- Go to the portal for e-invoices
- Click on the Register button
- Click on e-Invoice Enablement
- Input the GSTIN of the company.
- You’ll need to obtain the OTP confirmation done.
- Complete the annual turnover information along with the financial year in which it is correlated and then submit
- You are now registered for electronic invoices.
- You can sign into the e-invoice portal to upload invoices B2B with the mode you prefer to create IRN
- How can I upload e-invoices on GST portal? GST website?
Here’s how to upload an your e-invoice to GST portal: GST portal:
- Creation of e-invoice in JSON
- Uploading JSON on IRP
- Verification of e-invoice by IRP
- The generation of an IRN as well as QR Code
- Sending the IRN along with the QR to the seller.
- Printing the e-invoice using IRN along with QR code
Cancellation & Modifications
- Can an electronic invoice be cancelled in full or in part?
It is not possible to cancel an electronic invoice in part. If you have to end the e-invoice it should be done fully or completely.
If you cancel an e-invoice then you have to report this to IRN in the first 24 hours after the cancellation. If you attempt to cancel an electronic invoice after this time, then you are not able to make use of the IRN. Instead, you should make use of the GST cancellation portal and this must be completed by hand. It must be done prior to filing your tax returns. If you decide to cancel your invoice your account, you can’t use the invoice number and an entirely new invoice number must be made or else the IRP will refuse it.
- How does e-invoice work?
E-Invoicing is a two-part process The first is an interaction that occurs between business and the IRP and the other will be the interplay between IRP and the GST/E-Way Bill Systems, and the Buyer.
The seller creates an electronic invoice and then uploads it to the IRP. When the IRP has confirmed the e-invoice along with the IRN along with QR codes is created, it is returned to the seller. Additionally, it is updated in the e-way invoice as well as GST systems. The seller forwards the invoice to the IRN and QR code to the purchaser.
- How do I edit e-invoices on the GST Portal?
You are not able to make any changes to the IRP. However, you are able to modify the details of your invoice that are that are reported on the IRP via the GST portal while filing GSTR-1. Because GST and IRP systems are linked to GST, the GST system so that as soon as an electronic invoice is created the details of the invoice will be automatically entered in GSTR-1 and can be altered.
- Do we have the ability to generate an electronic invoice for an unregistered individual?
In the moment it is a notion that e-invoicing is only applicable to B2B invoices. Thus, any invoice sent to an people who are not registered does not fall within the definition of electronic invoicing.
- Who is eligible to sign up to receive E-invoicing?
Electronic Invoicing has been made compulsory for companies with an annual turnover of more than 5 crore by the 1st of August 2023. It will be obligatory for all businesses that have five million or more in any previous year’s financial year starting after 2017-2018.
E-Way Bill & Related Queries
- Do you need an e-way bill to be e-invoiced?
No. E-way bills are not necessary to be generated using the e-invoice. E-Way bills are required in the event that the consignment amount exceeds 50,000, or if your company is in the scope of e-invoicing. You will need to create both.
- Can we create an electronic bill using an electronic invoice?
Yes. You can create an electronic bill while you are creating an electronic invoice. But, you can generate it in the future.
- What are the benefits of e-invoicing for companies?
Due to the total interoperability of electronic invoice data and GST, due to the complete interoperability of e-invoice data with GST system, businesses are able to gain a wide range of benefits. For example the system will pre-populate the details of invoices in GSTR-1returns as well as e-way bills, which can help to ease the process of reconciliation. In addition, it gives the ability to view invoices in real-time which allows businesses to verify their eligibility to Input Tax Credit (ITC) and eliminate the risk of false invoices.
- How can e-invoicing help to reduce tax fraud?
E-invoicing has many advantages and among the benefits is its ability to stop tax fraud.
If you use an electronic invoice it is possible to edit invoices are low since prior to any transaction being completed the invoice is created. Another reason e-invoice systems can be beneficial is because it guarantees that the authorities are aware of all transactions in real time. Invoicing electronically reduces the risk of fake GST invoices, and also ensures that tax credits for inputs are legitimately claimed. GST invoices thanks to automated and thorough due to automation and thorough. If a person tries to claim a fraudulent tax credit, it’s easy for GSTN to identify their activities.