A computer-generated invoice is called an e-invoice. Basically, e-Invoices are invoices that have already been generated from accounting software so they can be uploaded to GST Portal as well. The GST Council believes that the format of electronic data used for invoices needs to be uniform (same for all) so that the data can be shared effectively. As a result, the GST department has implemented an e-invoice system. It is important for businessmen to be aware of some technical details when implementing e-Invoices in order to avoid penalties. We will discuss GST e-Invoice’s latest updates, procedure, bulk generation, and other formalities in this article.
Updates of GST e-Invoice
Updated on 01-08-2022: The notification for e-invoicing has been issued for taxpayers with aggregate turnover over Rs. 10 crores as of 1st October 2022.
With effect from 1st October 2022, e-Invoicing has been extended to all businesses with an annual aggregate turnover exceeding Rs. 10 crores up to Rs. 20 crores, as per notification number 17/2022. You can check the latest notifications related to e-Invoice from the table given below. Notification No.17/2022 – Central Tax (CGST) Dated 1st August 2022 – Download Here
Updated on 24-02-2022: E-invoicing will be implemented for taxpayers with turnover exceeding Rs. 20 crores from April 1, 2022. The e-Invoicing system will be extended to businesses with an annual aggregate turnover of more than Rs.20 crores up to Rs.50 crores. Notification No.01/2022 – Central Tax (CGST) Dated – Download Here
What is e-Invoice Under GST?
Communication Between Computer System: Despite the fact that invoices generated by every software look similar, they cannot be understood by another computer system, even though business users understand them completely. The GST System can’t read data on invoices generated by accounting/billing software, as they use their own formats to store information electronically.
Standard Format: To ensure compatibility of electronic invoice data, a standard format was needed for sharing electronic data of invoices. Consequently, the GST department created the e-Invoice system on the recommendation of the GST council in its 35th meeting. e-invoicing does not mean that invoices must be generated on the GST portal, but that they can be submitted on a common e-invoice portal.
Common Portal: By way of Notification No.69/2019 – Central Tax, CBIC has notified the common portal for preparing e-invoices i.e. https://einvoice1.gst.gov.in/. For pre-populating returns and reducing reconciliation issues, tax departments use e-invoices. E-invoicing was initially only applicable to large businesses and companies. Starting on 1st October 2022, it will also apply to businesses with gross turnover exceeding Rs.10 crore.
Invoice Reference Number: The e-invoice system creates an invoice reference number (IRN) that is unique from other invoices. Whenever an invoice, debit note, or credit note is submitted on the e-invoice system, a unique 64 characters invoice reference number must be generated. Invoice reference numbers (IRNs) and QR codes (Quick Response Codes) will be generated by the e-invoice system. The QR codes will enable hand-held devices to view, validate and access e-invoices.
QR codes: It will be helpful for tax officers to check invoices on the roadside where Internet access may not always be available. The digitally signed QR codes will have a unique IRN (hash) that can be verified on the central portal and in an offline app. As the tax authorities will be able to access data in real-time, the e-invoice system will help curb the actions of fraudulent taxpayers.
Applicability of e-Invoice
E-invoicing is mandatory for taxpayers whose turnover exceeds the specified limit in any financial year between 2017-18 and 2021-22. In addition, all GSTINs under one PAN across India will be included in the aggregate turnover. The turnover limit as per the notifications issued by the GST department is as follows.
|Turnover||Applicable Date||Notification Number|
|Rs.10 Crore||01-10-2022||17/2022 – Central Tax|
|Rs.20 Crore||01-04-2022||01/2022 – Central Tax|
|Rs.50 Crore||01-04-2021||05/2022 – Central Tax|
|Rs.100 Crore||01-01-2021||88/2020 – Central Tax|
|Rs.500 Crore||01-10-2020||61/2020 – Central Tax
70/2020 – Central Tax
|Schema of e-invoice||60/2020 – Central Tax|
According to CBIC Notification No.13/2020 – Central Tax, e-Invoicing is not applicable for now to the following categories of registered persons, regardless of turnover.
- An insurer or a banking company or a financial institution, including a non-banking financial company (NBFC)
- A Goods Transport Agency (GTA) supplying services in relation to transportation of goods by road in a goods carriage
- A registered person supplying passenger transportation services
- A registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex services
- An SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax)
- A government department and Local authority (excluded via CBIC Notification No. 23/2021 – Central Tax)
Registration for e-invoice System
It is very simple to register for e-invoices. Taxpayers who have already registered on the e-way bill portal can use the same login credentials to log into the e-invoice portal. A taxpayer can register for an e-invoice if they are not registered on the eWay bill portal. Under the GST system, the taxpayer must have a GSTIN and a mobile number registered.
- e-Invoices can only be accessed by GST-registered taxpayers with valid GTINs.
- If you have access to the e-way bill system already through your e-way bill login credentials, you don’t have to register again for the e-invoice system. For access to
- the e-invoice system, they can use the same credentials.
- Taxpayers who have already registered GSTINs will receive a popup message stating their GSTIN is already registered if they attempt to register again.
Steps to Register on e-invoice
Step 1: Open the URL address https://einvoice1.gst.gov.in/.
Step 2: Now, click on “Portal Login”, it will redirect to you on the “e-invoice registration form” enter your “GSTIN” and captcha code and click on “Go” to submit the request.
Step 3: It will display the details of the Applicant associated with the GSTIN. As registered in the GST portal, these details are Applicant name, Trade name, mobile number, and email address. A one-time password (OTP) will be sent to the registered mobile phone if the user clicks on Send OTP after verifying the details. In the registration form, the user must enter the OTP and click the Verify OTP button.
Recommended: GST Registration Procedure 2022
Step 4: Once the OTP is verified, the system will prompt the user to enter their User name (6-15 characters) and their password, which will then be re-entered for confirmation before clicking Save. With the created credentials, the user can now log into the e-invoice system.
Benefit of e-invoicing System
- When using e-invoicing, you can track invoices sent, viewed, and paid. If the invoice is sent and received, you will know for sure that it has been received.
- Invoicing can be simplified with e-invoicing by eliminating many unnecessary steps. Your customer and you will both benefit from using e-invoicing.
- Paperless invoicing eliminates paper costs and postal fees. Additionally, e-invoicing saves time rather than using templates and emailing PDFs. Rather than focusing on these tasks, focus on other tasks that add value. Time is money, as we all know!
- All your invoices are stored on one platform, which is accessible from anywhere on any device if you use online invoicing software.