E-invoicing under GST

GSTN electronically validates each invoice for further use on a common GST portal. Invoice Registration Portal (IRP) issues a unique IRN number for each invoice and validates the invoice.

E-invoicing is mandatory for all registered persons with an aggregate turnover above 100 Cr in an FY as per the 35th GST Council meeting.

This is a seamless updation of invoice information from IRP to both the GST portal and e-way bill portal consecutively. Thus eliminating the process of manual data entry during GST return filing as well as e-way bill generation.
E-invoicing under GST is mandatory from April 2020.

Benefits of E-invoicing under GST

  1. Elimination of the fake invoices and its generation.
  2. Substantial reduction in ITC verification issues.
  3. One time reporting on B2B invoice data reduces multiple formats reports (for GST ANX-1 and for the e-way bill).
  4. By uploading the E-invoice data, it will help you generate part A of the e-way bill.
  5. Real-time tracking of invoices prepared by the supplier.
  6. Assist in the automatic preparation of GST Returns (ANX 1 and ANX 2).
  7. E-invoicing system will auto-match input credit liability with output tax.
  8. It saves time, human errors for data entry, and also avoids major reconciliation issues.

Mandatory fields in the e-invoice

The e-invoice format is modeled on the existing GST invoicing rules. It should contain elements of the invoicing system and policies of each industry /sector.

It has mandatory information and optional information for business purposes. Many fields are optional so that the users can only fill up relevant fields. Certain fields under the e-way bill format is also incorporated into this e-invoice.

Mandatory fields under e-invoicing are:

1Invoice ReferenceNumber (IRN)(Max length:64)
Unique reference number of the invoice. The supplier can not enter it. The IRP will only generate IRN and respond to the registration with the IRN. Invoice is only valid once it has the IRN.
2Code for Supply type (Max length:10)B2B/B2C/SEZWP/SEZWOP/EXPWP/EXPWOP/DEXPA code to identify the supply type.
3Code for the Document type Invoice /  Credit Note / Debit NoteType of the document can be used as Invoice, Credit or Debit note.
4Document number (Max length:16)a/1/2019It will be as per invoice number rule mentioned in CGST/SGST/UTGST Rules.
5Document Date (DD/MM/YYYY)The issue date of the e-invoice.
6Supplier Information Legal Name, GSTIN, address, Place/City/Town, State, PIN CodeInformation about the supplier.
7Buyer Information Legal Name, GSTIN, address, Place/City/Town, State, PIN CodeInformation about the buyer.
8Invoice Item DetailsSerial Number, Service, HSN code, Item Rate per unit quantity, Gross amount,  Net amount, GST Rate, Item total amountProvides information about the goods and services invoiced.
9Total Amount in INR Decimal (13,2)
The total amount of the invoice should be rounded off to two decimals including GST.
10GST(Max length:10)Only for the GST supplies.
11E-way Bill Details Transporter, Mode of transportation, Distance of transportation.These details to be provided.
12Shipping toLegal Name, Address, Place, PIN code, State CodeOf the entity to which the supplies are shipped to.
13Dispatch From DetailsName, Address, Place, PIN code, State CodeOf the entity from which goods are dispatched.
14The total taxable value of the invoiceDecimal (13,2)768439.35The sum of the taxable amounts of all the items in the document.
15Batch number/ name (Max length: 20) 673927Batch number details may be relevant for a certain set of manufacturers.

Points to keep in mind

  • Signature on e-invoice: After IRP validate the e-invoice, it will digitally sign the document. Therefore, no need for anyone to sign e-invoice again.
  • Company Logo on e-invoice: Logo is neither a part of the JSON file nor it is sent to IRP. But the company can enter a LOGO to the billing/accounting software and print it on an invoice.
  • Printing of QR Code on the invoice: The seller will get QR code when he uploads and registers the invoice into the Invoice Registration system. The seller can also print the same on the Invoice. B2C Invoice with QR Code is mandatory for a registered person, whose aggregate turnover in an FY is above 500 crores.
  • Validity of invoice without Invoice Reference Number (IRN): E-invoice will be valid only if it has IRN.
  • Printing of e-invoice: Both the seller and the buyer can print the invoice using the QR code and signed e-invoice returned by IRP.
  • Cancellation of e-invoice: To cancel the invoice, report it to IRP within 24 hrs. But after 24 hrs you can cancel it on GST portal before filing your returns. Remember, you can only fully cancel an e-Invoice and cannot do partial cancellation.
  • To amend e-invoice: You can amend the e-invoice only on the GST portal as per the GST law.
  • E invoices for Exports: The buyer’s system can read the e-invoice with ease because its base schema is identical to the common standard.
  • E-invoice schema for RCM: The e-invoicing system also contains the reverse charge mechanism reporting.