Today, an update related to the auto-population of e-invoice in GSTR-1 has been provided in the GST portal and can be presented and summarized as below:-
- Certain notified taxpayers have to prepare and issue their invoices by obtaining Invoice Reference Number (IRN) from Invoice Registration Portal (IRP) (commonly referred to as 'e-invoices').
- As per notification no. 61/ 2020 – Central Tax dated 30th July 2020. The threshold turnover for issuing e-invoice is Rs 500 crores.
- The threshold for the purpose of e-invoicing is to be taken for all GSTINs in a combined manner.
- After successful generating IRN, details of such e-invoices will be auto-populated in respective tables of GSTR-1. The details of e-invoices available for auto-population along with the status of auto-population can also be downloaded as an excel file. To give effect to e-invoice, certain tabs/labels are being added on the GSTR-1 dashboard and screens. (Those taxpayers for whom e-invoicing is not applicable may ignore these changes.)
- For the period of October 2020, the e-invoice details would be processed incrementally from 13th November 2020. The processing of details of e-invoices/IRNs generated till 31st October 2020 is expected to take up to 10 days. )
- The processing of documents, dated October 2020, has no effect on the filing of GSTR-1 for October. The taxpayers are advised not to wait for auto-population but file GSTR-1 for October, on their own (if not filed already). However, there is an option to download the details of October-dated documents through an excel file.
- Taxpayers are requested to verify the documents present in the excel and may share feedback on GST Portal, on the below aspects:
- All documents reported to IRP are present in excel
- The status of each e-invoice/IRN is correct
- All the details of the document are populated correctly
- For the period of November 2020, the e-invoices generated (i.e. the documents dated in the Month of November) will be auto-populated into GSTR-1 in an incremental manner and the process for the whole month will be completed by 2nd Dec, 20 (i.e. on a T+2 basis).
Let us quickly have a look at the e-invoicing regime and try to understand it.
- "E-invoicing" is a system, where the taxpayer will upload his invoice details and register his supply transaction on the Government Invoice Registration Portal (IRP) and get the Invoice Reference Number (IRN) generated by the IRP system.
- The taxpayer will first prepare and generate his invoice using his accounting system or manually and then upload these invoice details to IRP and get the unique reference number, known as IRN. E-invoice does NOT mean preparation or generation of tax payer's invoice on government portal rather its only intimation in the government portal that invoice has been issued to the buyer, by registering that invoice in the GST portal.
- Threshold Turnover for preparing E-Invoice is Rs 500 Crores.
- The IRN has to be generated for the documents of Invoices, Debit Notes and Credit Notes for the local, interstate, and export transactions.
- E-invoice system is also applicable in reverse charge mechanism reporting as well.
- E-Invoice can be canceled if the e-way bill is not generated or the e-way bill is canceled. However, the invoice can only be canceled in full and part cancellation is not allowed.
- The taxpayer will first prepare and generate his invoice using an accounting system or manual system and then upload these invoice details to IRP and get a unique IRN.
- The pre-requisite for the generation of e-invoice is that the person who generates e-invoice should be a registered person on the GST portal and e-invoice system.
- Once an IRN is generated for an invoice, IRN can't be regenerated.