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GST e-Invoicing

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Your Quick Guide to Generate GST E-Invoice

A GST e invoice also called an electronic invoice is a digital document for the GST invoices. It has replaced the manual invoicing methods for businesses. This system was introduced in 2020. GST e invoices are electronically generated and uploaded to the GST e invoice portal, a government portal also called the Invoice Registration Portal (IRP). The IRP validates the invoice details, assigns a unique Invoice Reference Number (IRN) and generates a QR code.

Process for E-Invoicing In GST

A standard format for e-invoicing in GST should be followed by any related software.

Step 1: Choose an Accounting Software

The accounting software or ERP you choose should follow the CBIC, PEPPOL and invoice schema standards. Collaborate with the software provider for the same. Remember that the software should generate a JSON for the invoice.

Step 2: Generate an IRN

Generate a unique Invoice Reference Number (IRN) via the software using a hashing algorithm such as SHA56. This IRN is the reference number for your GST e invoice.

Step 3: Upload JSON

You may directly upload the JSON of the final invoice on the Invoice Registration Portal (IRP) or do it via an API or a reliable third party.

Step 4: Let IRP Validate the Details

IRP validates the details in your B2B invoice and generates the IRN. The IRP also creates a QR code for your invoice after digitally signing it. Finally, you will get an email regarding the generation of your GST e invoice.

Documents for E Invoicing Under GST

- 1. Credit notes by the supplier.
  2. Invoices by the supplier.
  3. Debit notes of the recipient.
  4. ISD invoices.
  5. Bill of entry and supply.
  6. Delivery challan.

These documents come under the Section 34 of the CGST Act.

Are You Still Confused with the GST E Invoice Generation?

Importance of E-Invoicing GST

E invoicing GST is a shift towards a more digital, transparent and efficient tax administration system. Its importance is as follows:

E-invoicing software minimises errors in calculations.
Streamlines the entire invoice generation, transmission and record-keeping.
Pre-populated e-invoices seamlessly integrate with GST return forms.
You may track the status of your e invoices in real time using the IRP portal.
E invoicing GST eliminates the need for physical storage of paper invoices.
It provides a clear digital audit trail.

Final Words

GST e invoice streamlines invoice generation and record-keeping processes. You may also integrate it with the GST returns after a validation by the invoice registration system. Amendments can be made only via the GST portal. The government, on the other hand, enjoys improved transparency and enhanced tax collection. It comes with a few initial challenges but has long-term benefits.

FAQs

Can I Cancel E Invoicing In GST?

You may only completely cancel e invoicing in GST. However, you must notify the IRP within 24 hours. Otherwise, you must manually cancel via the GST portal.

Who Needs to Generate E Invoices?

Currently, it is mandatory for businesses with a cumulative turnover exceeding Rs. 5 crores and Rs. 10 crores.

What Are the Challenges with GST E Invoice?

The initial investment for the software, technical knowledge (for smaller businesses), dependence on the internet and limited applicability (currently) are the challenges with GST e invoice.

Does the GST Portal Generate an E Invoice?

No, the GST portal does not generate an e invoice. Rather, you have to generate it via an ERP and upload it to the portal.

What Are the Mandatory Fields in a GST E Invoice?

Mandatory fields in a GST e invoice are all details regarding the supplier, document number and type code, date, recipient’s details and more.