Changes on Export Invoices due to E-Invoicing

In E Invoicing by Vivek C V


The Invoicing system in GST is defined for major overhaul in the coming financial year. This includes E-invoicing, Quick-Response Code and facility of digital payments to recipients. E-Invoicing or electronic invoicing is a process of validating invoices electronically through GST Network (GSTN) for further use on common GST portal. This is also has a direct implication on Availment of ITC, generation of E-way bill and filing of GST returns.

GST Invoice / Customs Invoice which is prepared for the movement of Goods from factory to port needs to be registered with the IRN portal. Exporters can continue furnishing information related to Incentives availing such as Duty drawback serial Number , Advance /EPCG authorisation MEIS declaration details in Invoice output will not have any impact in registering with IRN portal and it is not mandatory for E-Invoicing.

Treatment of Exports under GST:

Under the GST regime, the exporter has either of the two options: Export under bond without payment of tax. Export along with tax payment and claim refund later. Here exporter has to prepare customs Invoice on which shipping bill will be filed with Customs for the clearance of cargo. E-Invoicing is required for Exports transactions to automate the refund mechanism to Exporter in the following business scenarios (IGST Refund).

  • Refund of unutilized input tax credit (ITC) on account of exports without payment of tax;
  • Refund of tax paid on export of services with payment of tax
  • Refund of unutilized ITC on account of supplies made to SEZ Unit/SEZ Developer without payment of tax
  • Refund of tax paid on supplies made to SEZ Unit/SEZ Developer with payment of tax;
  • Refund to the supplier of tax paid on deemed export supplies
  • Refund to the recipient of tax paid on deemed export supplies

Following type Exports transactions requires E-Invoicing

  • Direct Exports (Including Exports to Nepal & Bhutan )
  • Deemed Exports
  • Exports from SEZ Units
  • SEZ Developer

While registering with IRN Portal Export category needs to be furnished by the Exporter. (Direct/Deemed/SEZ). Debit note and credit note registration with IRN portal is applicable for

Exports scenarios. Exporters can continue using the existing Invoice format for the E-Invoicing along with additionally capturing the QR code.

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About the Author

Vivek C V

A qualified functional (In International Trade domain) as well as a trained IT Professional with over 15 years of total experience, out of which over 10 years in SAP ERP Implementation as well as a Business Analyst. Involved in Requirement analysis, Product Development and Leadership of Customer Support Team. Gained strong experience in Project Coordination, Business Analysis and Team Management. Being a Logistics Manager attained proficiency in managing the Commercial export/import operations encompassing logistics and allied functions. Comprehensive exposure in Profound understanding Customs rules & regulations, EXIM Policy ( Legal Compliance)

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