E-invoicing Process

In E Invoicing by Manoj P

FAQ on Einvoicing

E-invoicing is a new reform which entails the generation of invoices in an electronic format, which facilitates machine readability across ERP and tax systems.

The government has mandated the applicability of e-invoicing to businesses having an annual turnover exceeding INR 500 crore with effect from.1st Oct 2020.

Refer CBIC Notifications mentioned below:
68/2019  | 69/2019  | 70/2019 | 02/2020 | 13/2020 | 60/2020 | 61/2020

Taxpayers exempted from e-invoicing:

  • Those having annual turnover below INR. 500 Cr.
  • SEZ Units, Insurer, Banking Company, Financial Institution including NBFC, GTA, Supplier of passenger transportation service, Multiplex screens

Type of transactions covered under e-invoicing

  • Invoices, Credit Notes and Debit Notes as applicable for
    • Outward supplies (goods and services) coming under GST purview
      • B2B
        • Domestic Sales (intra-state and inter-state)
        • Inter-state STO
      • Exports
        • With pay of IGST & without IGST
      • Supply to SEZ (with pay / without pay of IGST)
      • Deemed exports
    • Not applicable:
      • B2C (supplies to unregistered dealers or consumers)
      • ISD Invoices
      • Job Work / Bill of supplies & other documents not coming under GSTR1 purview

How to find out if a tax-payer is coming under the purview of e-invoicing?

https://einvoice1.gst.gov.in/
Click on Search > e-invoice status of Taxpayer

The different modes of generating the IRN under e-Invoicing:-

  • No change in the way Tax invoices, credit notes and debit notes are raised in ERP
  • However, the invoice data needs to be registered with the Invoice Registration Portal (IRP), which expects data in a prescribed format (schema) including mandatory fields and conditional-mandatory fields. The final data expected by IRP is in JSON format
  • This invoice registration at IRP can be done in multiple ways:
    • Directly through system integration from ERP with the e-invoice portal (IRP) via API
    • Through system integration (ERP with IRP) via a GST Suvidha Provider (GSP) via API
    • Through system integration via an Application Service provider system (ASP) & GSP
    • Directly by logging in to the portal (IRP) and manually entering invoice data (proposed)
    • Through a combination of an offline tool provided (data entry and conversion to JSON) followed by the bulk upload option in the IRP portal (size limit of 2 MB per upload)
    • Note: E-commerce operators can register e-invoices on behalf of supplier

  • Invoice Reference Number (IRN)

    IRN is generated by IRP, based on:

    Seller’s GSTIN

    Document Type

    Document Number

    Financial Year

    SHA256 algorithm for IRN

    64 digit, alpha-numeric code

  • Quick Response code (QR) by IRP

    Machine Readable (via prescribed app)

    1. Supplier GSTIN
    2. Recipient GSTIN
    3. Supplier Invoice number
    4. Date of  invoice
    5. Invoice value
    6. Number of line items
    7. HSN Code (Main item)
    8. IRN

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About the Author

Manoj P

DIRECTOR ( Product Life Cycle Management). Information technology leader with outstanding track record of success in designing, delivering and supporting business-aligned technology solutions on a global scale for Industry-leaders across verticals. He has 28+ years of industry experience, including 19 years in SAP with IVL.