What is GST E-Invoicing?
E-Invoicing (Electronic Invoicing) is a system where B2B invoices are electronically authenticated by the GST Network (GSTN) for further use on the common GST portal. Under this system, an identification number called the Invoice Reference Number (IRN) is issued against every invoice by the Invoice Registration Portal (IRP).
This ensures that a common format is followed for all invoices, facilitating interoperability across the GST ecosystem.
Who Needs to Generate E-Invoices?
E-invoicing is mandatory for registered persons whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds the prescribed limit (currently ₹5 Crore).
It applies to:
- B2B Supplies (Business to Business)
- Exports (Direct & Deemed)
- Supplies to SEZ Units/Developers
- Reverse Charge Mechanism (RCM) Invoices
Exemptions: SEZ Units, Insurers, Banking Companies, GTAs, Passenger Transport Services, and Multiplex Cinemas are exempt from e-invoicing.
How to Generate an E-Invoice?
- Invoice Creation: Create the invoice in your ERP/Billing software as usual.
- JSON Generation: Generate a JSON file of the invoice details as per the schema.
- Upload to IRP: Upload the JSON to the Invoice Registration Portal (IRP).
- Validation: The IRP validates the data and checks for duplicates.
- IRN Generation: Upon successful validation, the IRP generates a unique IRN and digitally signs the invoice.
- QR Code: The IRP returns the signed JSON with a QR code.
- Final Invoice: The supplier issues the invoice with the QR code to the buyer.
Mandatory Fields in E-Invoice
Key details required for generating an IRN include:
- Transaction Details: Tax Scheme, Supply Type.
- Document Details: Type, Number, Date.
- Seller & Buyer Details: GSTIN, Legal Name, Address, Place.
- Item Details: HSN Code, Description, Quantity, Unit Price, Taxable Value, GST Rate, Tax Amount.
- Total Values: Total Taxable Value, Total Tax Amount, Total Invoice Value.
Cancellation of E-Invoice
An e-invoice can be cancelled on the IRP within 24 hours of generation. The cancellation must be done using the IRN.
Important Points:
- Partial cancellation is not possible.
- Once cancelled, the same invoice number cannot be used again to generate a new IRN.
- If 24 hours have passed, you cannot cancel it on the IRP. You must issue a Credit Note or Debit Note to nullify the transaction on the GST portal.
