What is this e-Invoice?

Under e-Invoicing, certain taxpayers are mandated to report invoice particulars to Invoice Registration Portal (IPR) and obtain Invoice Reference Number (IRN).

After following this 'e-Invoicing' process, the invoice copy (with QR code containing IRN and other particulars) issued to the buyer is commonly referred as 'e-Invoice'.

Because of standard invoice schema (INV-01), 'e-Invoicing' also facilitates electronic exchange of invoices between suppliers and buyers.

So, it is not just soft copy of an invoice Right?

E-Invoice is not about invoice being in soft copy like PDF etc.Also, e-Invoicing doesn't mean generation of invoice by a Government Portal.

  • Taxpayers will continue to create their GST invoices on their own Accounting/Billing/ERP Systems.
  • Some specified particulars of the invoice need to be uploaded in FORM GST INV-01.
  •  On reporting, IRP Returns signed e-Invoice with unique 'Invoice Reference Number (IRN)' and a OR Code having embedded IRN in it.
  • Then, the invoice is to be issued to receiver (with QR Code).
  • A GST Invoice will be valid only with a valid IRN.

To whom is e-invoicing applicable?

From 1st October 2020, E-Invoice will be applicable to:

Taxpayers having aggregate turnover (based on PAN) of more than Rs. 500 Crores in any preceding FY from 2017-18 onwards.

Sector exempted: SEZ Units, Insurance, Banking [including NBFCs], Goods Transport Agency [transporting goods by road in goods carriage], Passenger Transport Services, Multiplex Cinema Admissions.

What are the documents and supplies covered?

The following documents/supplies are covered:

Documents

  •          Invoices
  •          Credit Notes
  •          Debit Notes

Supplies

  •          B2B Supplies
  •          Supplies to SEZ Developer
  •          Exports
  •          Deemed Exports

 Advantages of E-Invoice

  •          Ease in GST Compliance
  •          Accuracy
  •          Reduction of reconciliation errors
  •          Cost reduction
  •          Elimination of paper
  •          Better working capital efficiency
  •          Overall enhancement in business efficiency

Any latest changes in e-Invoice?

These five are the recent additions on 30th Sept,2020.

  1.          Regarding aggregate turnover threshold, it is specified that those who crossed Rs 500 cr. in any preceding FY from 2017-18 onwards, will be covered.
  2.          Supplies for exports are also specifically included under e-invoicing.
  3.           QR code, having the invoice Reference Number (IRN) to be part of invoice copy issued to buyer.
  4.         In case of any contingency, Commissioner can exempt a person or a class of registered persons from e-invoicing for a specified period.
  5.          Where e-invoicing is applicable, physical copy of invoice need not be carried (during movement of goods) and it is sufficient if the QR Code having IRN is produced electronically, for verification by proper officer.

I'm not ready for e-invoicing. What I can do?

As a last chance, Government has given relaxations:

  •          Invoices raised by notified taxpayers during October 2020 without following e-invoice procedure (i.e. uploading invoice details on e-invoice portal, obtaining IRN and issuing invoice with QR Code) will be deemed to be valid.
  •          No penalty will be there if the IRN for such invoices are obtained within 30 days of date of invoice.
  •          For example: An invoice dated 3rd October, 2020 (raised without obtaining IRN), has to be reported to IRP and obtain IRN on or before 2nd November, 2020.

Disclaimer: The article is based on the relevant provisions and as per the information existing at the time of the preparation. In no event i shall be liable for any direct and indirect result from this article. This is only a knowledge sharing initiative.


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