‘e-Invoicing’ refers to the process of reporting specific GST documents to a Government-notified portal known as the Invoice Registration Portal (IRP) and obtaining an invoice reference number. It is important to note that e-Invoicing does not involve generating invoices via a Government portal. In this system, taxpayers still create their GST invoices using their own Accounting/Billing/ERP Systems. The generated invoices are then submitted to any of the six authorized ‘Invoice Registration Portals (IRPs)’ in a standard format, referred to as ‘Schema’ or Form GST INV-1. The process of generating Invoice Reference Numbers (IRNs) on these portals is free of charge.
For help of the taxpayers and other stakeholders, the GSTN has released a step-by-step guide for implementation of GST e-Invoicing in India:
GSTN Guide on Step-by-Step Implementation of GST e-Invoicing in India (dated 18/08/2023)
Applicability of e-Invoicing
Taxpayers whose aggregate turnover exceeds the notified limits based on PAN in any preceding financial year (since 2017-18) are required to adhere to e-invoicing regulations. As of 1st August 2023, this requirement applies to taxpayers with an aggregate turnover of 5 crore and above.
Exemptions from e-Invoicing
Certain taxpayers or entities are exempt from the requirement of e-invoice reporting as specified in relevant notifications. Detailed information about exemptions can be found in the respective notifications.
Documents and Supplies Covered
The scope of e-Invoicing covers GST invoices, Credit Notes, and Debit Notes related to various types of supplies, including B2B Supplies, Supplies to SEZs (with and without payment), Exports (with and without payment), and Deemed Exports.
Process of e-Invoice
i. Taxpayers continue to generate GST invoices using their own Accounting/ Billing/ ERP Systems.
ii. These invoices are then submitted to any of the authorized ‘Invoice Registration Portals (IRPs)’.
iii. The IRP returns a digitally signed e-Invoice along with a unique ‘Invoice Reference Number (IRN)’ and a QR Code.
iv. The GST invoice, now with the added QR Code, can be issued to the recipient. t’s important to note that a B2B transaction’s GST invoice is considered valid only with a valid IRN.
Steps for e-Invoice Reporting
Step 1: Enablement for e-Invoicing
i. Taxpayers eligible for e-Invoicing as per Government notifications are automatically enabled for reporting e-Invoices on any of the six authorized IRP portals.
ii. The enablement status can be checked at:
https://einvoice.gst.gov.in
iii. Eligible taxpayers not yet enabled can self-enable at:
https://einvoice.gst.gov.in.
iv. It’s important to clarify that enablement does not necessarily imply legal obligation. It primarily ensures that only taxpayers meeting the notified turnover limits can register, test, and report invoices on IRPs.
Step 2: Register on Invoice Registration Portals
Taxpayers must register on any of the six authorized IRPs before they can start reporting e-Invoices. This registration process involves a one-time verification of the taxpayer’s registered mobile number and email via OTP. Upon successful validation, login credentials for the IRP portal are provided, allowing the taxpayer to report e-Invoices.
Step 3 & 4: Reporting and Auto-population of e-Invoice
i. To obtain an Invoice Reference Number (IRN) for e-Invoices, taxpayers must submit e-Invoice data on the IRP portal using the predefined INV-01 schema in JSON format.
ii. Most IRPs offer various methods for submitting e-Invoices, including offline tools, online web tools, mobile apps, and API-based methods.
iii. The schema and the portal incorporate built-in validations to prevent duplicates and ensure accuracy.
iv. Once successfully validated, a digitally signed e-Invoice with a unique IRN and a QR code is returned to the taxpayer.
v. A copy of this invoice is then shared with the GST system for automatic population in the supplier’s GSTR-1 return.
vi. The supplier issues the e-Invoice containing IRN details to the buyer.
e-Invoice Verification
Taxpayers have multiple options for verifying the IRN of an e-Invoice:
i. Utilize the GSTN e-Invoice QR Code Verifier app available on Google Play/ App Store.
ii. Use the “Search IRN” functionality available at:
https://einvoice.gst.gov.in/einvoice/search-irn.
e-Invoice Master FO Portal
i. Given the increased number of IRP portals (now six), GSTN has developed a comprehensive e-Invoice master information portal accessible at:
https://einvoice.gst.gov.in.
ii. This portal serves as a one-stop resource for all e-Invoicing related information, including master codes, enablement status checks, IRP details, e-Invoice schema, and more.
iii. It is anticipated that this portal will also allow downloading e-Invoices in the near future.
Disclaimer: The provided information is intended to offer guidance and support. Taxpayers are advised to refer to relevant sections of the CGST Act and Rules for legal definitions and interpretation. This content does not constitute legal advice, and users are responsible for ensuring compliance with applicable laws and regulations.
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