GST E-invoicing : What is e-invoice

by Isha Jagi Blogger

GST E-invoicing at India went LIVE for B2B transactions from 1st October 2020. Same will probably be introduced afterward for all of the taxpayers. E-invoicing under GST is a mechanism being introduced to curb tax evasion and empower an invoicing standard in India. Together with the execution of E-invoice generation, the GST system will likely have the ability to validate all of the B2B transactions electronically and pre-populate exactly the exact same in citizen's GST return types, according to the corresponding particulars.

According to the recommendations of this GST council, the E-invoicing system has two facets i.e.

Adoption of a standard for its invoice, which will allow standardization and speedy data exchange

Registering the standard invoice with the Government, through Invoice Registration Portal (IRP), which will ensure the legitimacy of invoices.

Perks of GST E-invoicing at India

The advantages of introducing E-invoice generation under GST comprise:

· Auto-Populated GSTR 1 (for B2B invoices).

· Auto-populated Part A for Eway Bill generation (citizen is going to need to give vehicle details in Section B to finish EWB production )

· Auto-sharing of uploaded invoices (on IRP) together with all the buyers for reconciliation.

· The system will auto-match input credit liability with lead .

7 Measures to E-Invoice Generation

The invoice details have to be verified together with the government documents and receive the exceptional registration number. Moreover, the supplier/vendor must submit these E-invoices on the GSTN portal site for its validation purpose, after that, it may be utilized for return filing and EWB generation . Decoding the Whole process of E-invoice generation, directly from the invoice creation to sharing exactly the same together with buyers (for reconciliation), Here's a step-by-step manual for creating a Legitimate E-invoice:

1. Invoice Creation --

Invoice is made utilizing an accounting or billing software according to the prescribed format for E-invoicing. Clearing the fog to a significant misconception surrounding the E-invoice generation, it isn't compulsory for a citizen to create E-invoice throughout the government's tax gateway. In reality, the taxpayer may keep on employing any accounting applications of his taste, with the sole requirement being, the software's capacity to create the invoice in the particular e-invoicing format.

2. Invoice Registration Number (IRN) Generation:

Supplier can create a distinctive Invoice Reference Number (IRN) with a standard hash-generation algorithm. Production of IRN by supplier is discretionary. In lack of IRN, the IRP system of government will create the exact same.

3. Upload on Invoice Registration Portal (IRP):

JSON document for every B2B invoice (created via the accounting applications or some other third party application ), Together with the IRN, if created is uploaded to the Invoice Registration Portal (IRP)

4. IRP Validation of Invoice Information:

The IRP will confirm the generated hash/IRN connected with JSON (if uploaded by the supplier)or create an IRN and authenticate the document contrary to the central registry of GST for any duplication. The IRN is going to be the special identity of this E-invoice for the whole year.

5. Digital Signature and QR Code Generation:

Upon successful verification, the invoice will be upgraded with IRP's digital signature on the invoice data along with also a QR code will be inserted into the JSON file.

Know more about B2B QR code for e-invoicing and B2C QR Code for e-invoicing

6. E-Invoice information transmission to E-Way Bill Portal and GST System:

The uploaded information will be shared using the E-way invoice and GST system, which is utilized for auto-population of GST Annexures and

Know more about e-invoicing and E-way Bill

7. E-Invoice Receipt back to Supplier's ERP:

The portal site will ship the digitally signed JSON together with IRN and QR code back to the vendor. The invoice will also be delivered to the purchaser in their registered email id.

Though the E-invoicing system has been released to curb tax evasion and reevaluate GST compliance to get a citizen, it ought to be noted that choosing the proper invoicing solution may play a vital part in your compliance travel.

IRIS Onyx, an e-invoicing solution from IRIS GST, is a one-stop platform that you see, discuss and collaborate with your clients and suppliers alike, even while handling the whole communicating with the GST systems within an hassle-free method.