E-invoicing Concept

CA Rakesh Sharma (Chartered Accountant) (356 Points)

28 October 2019  

"E-invoicing Concept"

  • 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