- The GST Council approved the standard of e-invoice in its 37th meeting held on 20th Sept 2019
- E-invoicing is proposed to be implemented from 1st January 2020.
- It will be implemented in a phased manner by GSTN.
- Similar to the new GST return filing system, the electronic invoicing system will first be available on a trial basis or voluntary compliance
What is E-invoicing ?
- E-invoicing is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal
How does it work ?
Step 1: Taxpayers have to upload the invoice details in their accounting software (Tally, ERP, Busy, SAP etc.) and generate the JSON file.
Step 2: Now this JSON file have to upload onto the Invoice Registration Portal (IRP) to be managed by the GST Network.
Step 3: IRP will validate the key details of the B2B invoice, checks for any duplications and
- generates an Invoice Reference Number (IRN),
- digitally signs the invoice and
- creates a QR code in Output JSON for the supplier.
Step 4: IRP sends the e-invoice data with digital signature and QR code to the
- Seller and Buyer on the mail Ids provided in the invoice.
- GSTN Portal
- In ANX-1 (for outward supplies) for the seller, and
- In ANX-2 (for inward supplies) for the buyer.
- E-way bill system
- For creating Part-A of e-way bill and only vehicle number have to be added in Part-B of the e-way bill.
- Buyer has an option to accept or reject the transaction.
- GST system, further, will determine tax liability and input tax credit (ITC).
- The signing of e-invoice by seller is not mandatory
- The invoices with an IRN Number will be considered as a valid tax invoice for GST purposes