An invoice is a commercial instrument issued by a seller to a buyer. It identifies both the trading parties and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts, if any, and delivery and payment terms. In certain cases, (especially when it is signed by the seller or seller’s agent), an invoice serves as a demand for payment and becomes a document of title when paid in full. Types of invoice include commercial invoice, consular invoice, customs invoice, and proforma invoice. It is also called a bill of sale or contract of sale.
E-Invoice is nothing but an electronic invoice issued by all the Registered Persons whose aggregate turnover during the previous year was more than Rs. 100 Cores (ie. Notification No. 88/2020 – Central Tax dated 10th November 2020).
As per Rule 48(4) of CGST Rules, notified class of registered persons (ie. Registered Persons whose aggregate turnover during the financial year was more than Rs. 100 crores except exempted) have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN).
The process of issuance of Invoice Reference Number (IRN) with QR code after uploading all the particulars of invoice in Form GST INV-01 is called as e-Invoice under GST. Note that generation of E-Invoice doesn’t mean generation of invoice by a Government portal. It can be generated by using any software.
Registered persons can create their GST invoices on their own Accounting/Billing/ERP Systems and report to 'Invoice Registration Portal (IRP)’. On reporting, IRP returns the e-invoice with a unique ‘Invoice Reference Number (IRN)’ after digitally signing the e-invoice and adding a QR Code. Then, the invoice can be issued to the receiver (along with QR Code).
Supplies to registered persons (B2B), Supplies to SEZs (with/without payment), Exports (with/without payment), Deemed Exports, by notified class of taxpayers are currently covered under e-invoicing.
The basic aim behind adoption of e-invoice system by tax departments is ability to pre-populate the return and to reduce the reconciliation problems. The e-invoice system will help to curb the actions of unscrupulous taxpayers and reduce the number of fraud cases as the tax authorities will have access to data in real-time.
E-invoicing aims to make invoice reporting an integral part of a business process and remove the tedious task of invoice-compilation at the end of a return period. The e-Invoicing will help in curbing Goods and Services Tax (GST) evasion through issue of fake invoices and make the returns filing process simpler for businesses as invoice data be captured by a centralised portal.
All the Registered Persons except exempted persons, whose aggregate turnover during the previous year was more than Rs. 100 Cores (ie. Notification No. 88/2020 – Central Tax dated 10th November 2020) shall issue e-Invoice under GST.
The following persons are exempted to issue an e-Invoice under GST:
The following benefits are available to the Tax Payers:
Herein below is the step by step process to get registered under GST:
The tax payer has to generate the invoice in his/her GST Software as per the e-invoice standards and create a JSON File for uploading with Invoice Registration Portal.
Once the JSON file is generated, you can upload the same using API into Invoice Registration Portal for generating Invoice Reference Number along with QR Code.
Once the JSON file is uploaded, the Invoice Registration Portal will verify the JSON file and generates the digitally signed 64 digit Invoice Reference Number along with QR Code if the file is correct in al respects. You can find herein below the specimen digitally signed e-Invoice containing 64 digit Invoice Reference Number and QR Code.
Apart from generation of 64 digit Invoice Reference Number and QR Code, the Invoice Reporting Portal will share the invoice to E-Way bill poratl for online generation of E-Way Bill. The Tax Payer can generate the E-Way Bill and can save in time.
Submit Invoice details, Pan and Aadhar and get your GST eInvoice!