GST E-Invoicing in India: Applicability, Process & Compliance

A GST e-invoicing is the electronic generation of invoices in a standardized format. Under this system, specified businesses generate invoices electronically on a common portal and obtain an Invoice Registration Number (IRN), making the invoice legally valid.

A E-invoicing was introduced to: Standardize invoicing practices, reduce tax evasion, improve transparency, automate data reconciliation, and reduce errors and discrepancies.

A Currently, businesses with an aggregate turnover exceeding INR 5 crore in any preceding financial year are required to generate e-invoices. The threshold has been progressively lowered from higher turnover limits.

A An IRN is a unique identification number generated by the Invoice Registration Portal (IRP) for every e-invoice. It serves as proof that the invoice has been authenticated by the GST system.

A A QR code is a machine-readable code printed on the e-invoice. It contains important invoice details and can be scanned to verify the authenticity of the invoice.

A E-invoices are generated through the IRP. Businesses can integrate their accounting software with the IRP or use offline tools provided by the government to create and upload invoices in the prescribed JSON format.

A The process involves: Generating the invoice in the prescribed format, uploading the invoice data (in JSON format) to the IRP, IRP validating the data and generating the IRN and QR code, IRP digitally signing the invoice, and downloading the digitally signed e-invoice with IRN and QR code.

A The IRP is a government portal that authenticates e-invoices by generating the IRN and QR code.

A E-invoices can be generated via direct API integration with the IRP, through GST Suvidha Providers (GSPs), or using offline tools provided by the government.

A Benefits include: Improved efficiency and automation, reduced errors and discrepancies, faster payment cycles, enhanced transparency and compliance, and reduced paperwork.

A Benefits include: Increased tax compliance, reduced tax evasion, better tracking of transactions, and improved data analytics.

A Non-compliance can lead to penalties as per GST law.

A E-invoices cannot be amended. If there is an error, a credit note or debit note must be issued.

A The government may provide relaxations in such situations. Check the GST portal for announcements.

A The e-invoice format is specified by the GST Council and is based on the PEPPOL (Pan-European Public Procurement On-Line) standard.

A You need to work with your accounting software provider or a GSP to enable API integration with the IRP.

A The JSON format is a specific structure for exchanging e-invoice data, detailed in the e-invoice schema published by the GST Council.

A You can print the e-invoice from your accounting software or offline tools. The printed invoice must include the IRN and QR code.

A You will need the correct HSN codes for your goods or services to generate accurate e-invoices.

A A GSP (GST Suvidha Provider) provides services to businesses for generating and uploading e-invoices and integrating with the IRP.

A E-invoices can be cancelled within a specified time limit (usually 24 hours) of generation through the IRP.

A Common errors include incorrect data entry, invalid HSN codes, and technical issues with software integration.

A You can track the status on the IRP.

A The GST portal is the official source for notifications and circulars related to e-invoicing.

A The GST portal provides resources and helpdesk support for e-invoicing.