E-Invoicing under GST

E-Invoicing under GST

E-invoice is mandatory to all registered businesses whose aggregate turnover in any preceding financial year from 2017-18 onwards greater than Rs. 20 crore.

How e-invoice is generated?

It is clarified again that the e-invoice does not mean preparation or generation of tax payer’s invoice on Government portal. Taxpayers will continue to create their GST invoices on their own Accounting/Billing/ERP Systems. These invoices are now reported to ‘Invoice Registration Portal (IRP)’ in a standard format. On such reporting, IRP will validate the key details of the invoice, checks for any duplication and generates an invoice reference number (IRN), digitally signs the invoice and return the e-invoice to the supplier with QR code. Then, the supplier shares the e-invoice with the receiver (along with QR Code).

Documents and Supplies Covered under e –invoicing

  1. Documents
  2. Invoice
  3. Credit Note
  4. Debit Note
  5. Supplies

B2B Supplies

  • Supplies to SEZ (with/ without payment)
  • Export (with/without payment)
  • Deemed Exports
  • B2C Supplies

Exemption from e-invoicing

The following entities are not required to issue e-invoices even if their turnover exceeds Rs.20 crore in the preceding financial year from 2017-18 onwards.

  • Special Economic Zone units
  • Insurer or banking company or financial institution including NBFC
  • GTA supplying services in relation to transportation of goods by road in a goods carriage
  • Supplier of passenger transportation service
  • Person supplying services by way of admission to exhibition of cinematograph films in multiplex screens

Cancellation/amendment of reported invoice

Amendments are not possible on IRP. Any changes in the invoice details reported to IRP can be carried out on GST portal (while filing GSTR-1). In case GSTR-1 has already been filed, then using the mechanism of amendment as provided under GST. Howver, The cancellation request is possible within 24 hours from the time of reporting invoice to IRP.