E-invoice stands for an electronic invoice which is a digital document that is circulated between the buyer and seller. E invoice applicability is regulated by the tax portal of the government. The system of e-invoice works as with the business-to-business (B2B) under which the said invoice is prepared through the format of e-invoicing which is then authorized by the Goods and Service Tax Network (GSTN). The system gives promotion to a common format to be followed prior to reporting to the GST portal. The government did share a draft among the public in August 2019 which was then modified in accordance with their regulations. The purpose of introducing a standard format was for the ease of work to be easily followed by the industries and to ensure a proper GST ecosystem.
Current System of GST E-Invoicing in the Market
As we go in the market any transaction which takes place between the buyer and seller is required to be prepared and reported towards the GST Portal and e-Way Bill. Different software is used to generate the details for the invoice which are further entered through API by the taxpayers in the form of a GSTR-1 return. Then the same information can be seen in GSTR-2A thus which is made available to the recipient only showcasing “view only” permission. Similarly, the transporters are then required to generate the e-way bill either directly or by importing the details of the invoice in an Excel sheet of JSON manually. And the GST council introduced the new return system to abolish the paper system and E invoice applicability.
Standard E-Invoicing System of India
The basic purpose for the introduction of the e-invoicing system is following the standard format will thus allow the invoices to be shared easily and proper E invoice applicability. This allowed ease of work avoiding any conflict in relation to the filing of invoices and ensuring better transparency in the business industry which is good for both the government as well as buyers and sellers.
How to Generate E Invoice in GST Portal in India?
The GST invoice had two parts firstly, the communication stands between the Invoice Registration Portal (IRP) and secondly, the said interaction between IRP, the GST (Goods and Services Tax)/e-way Bill system and the buyer. Follow the process given below in order to generate GST invoice online:
Collect the Required Documents for E Invoice Login
Except for the reporting part, the taxpayers need to generate the invoice as used to be done before and the reporting work is to be done electronically. The e-invoice scheme is to be followed by the taxpayers and submit the required details accordingly. The below provides a list of required documents:
- Document details including the type, number and date.
- The transaction details include tax scheme and supplier type.
- The supplier information includes legal name, GSTN address, location, PIN code and the state code.
- The buyer information includes the legal name, GSTN number, address, location, state code and PIN code.
- The details of dispatch including address (Mandatory if from a different supplier)
- The shipping details(Mandatory if the address is different from buyers)
- Any item related to the services or goods, including the HSN code, the total amount, GST rate, the assessable amount and the total value of the item.
- Any invoice details that include the assessable values and total invoice value.
There are certain requirements as well and the optional requirements are highlighted by the council and can be changed accordingly with the business requirements. Once the said invoice is finalized then it is upon the taxpayer to ensure that the accounting or billing software can create a JSON file and after that it can be uploaded to the IRP.
Creating a Unique IRN for E Invoice Login
The creation of an IRN requires various parameters that need to be followed and submitted to the seller including the GSTIN number, the document number and the fiscal year. The check is then made by the IRP whether the data is under the Central Registry and after ensuring that there are no further duplicates towards the said IRP thus add a signature and QR code towards the invoice on JSON data. Then the final step involves the generation of hash by the IRP which is the Invoice Reference Number for the said e-invoice.
GST Update to the Invoice
The JSON which is digitally signed including the IRN needs to be sent to the seller. Then the data which is uploaded is shared with the GST and e-way bill system. GSTR-1 will be further updated by the GST system including the GSTR-2 for the seller as well as for the buyer and thus will assist in further determining the liability of the ITC. The said GST scheme will include the details like “Transporter ID” or “Vehicle Number” which shall be used to generate for the e-way bill.
Procedure for Registration
The registration for the e-invoicing portal stands as a very simple process if you are a GST registered taxpayer and have a valid GSTIN number. Having a registered business on the e-way bill portal eases the work as you just have to log in with the same credentials in the e-invoicing portal. If not registered then registration can be done to the invoicing system directly, but the taxpayer should have the GSTIN and the registered mobile number in the GST portal. Follow the given procedure in order to register under the GST:
- Go to Invoice Registration Portal
- Click on registration
- Directed to E-invoice registration form
- Enter the business GSTIN followed by Captcha.
- Proceed further by clicking on go.
- Cross check the details and proceed by sending OTP.
- The details will appear like applicant details, name and trade name.
- Enter the OTP and verify.
- The next step involves entering username and password for account.
- Re-enter the login details.
- Access is successful.
Why Should One Follow the E Invoice System in India?
Some major advantages of E Invoice System are given below:
- Assists in data entry and data collection in a precise manner.
- Promotes business.
- Can also track the invoices.
- It is auto-populated from the tax returns and makes it an easy process.
- Transactions will be available from all the time
- To build an efficient manner of the administration of taxes.
Conclusion
The generating of GST e-invoices through E Invoice system plays a vital role in the aspect of every business and thus it regulates to improve the efficiency and transparency in business and consistent operation. The accounting softwares ensures the ease of work for invoice processing and reduces the cost and burden of work and ensures faster payment for the more accountable process for invoice generation and regulates the relationship between buyer and seller.
FAQs
- What is an GST E-invoice?
E-invoice stands for an electronic invoice which is a digital document that is circulated between the buyer and seller and thus is regulated by the tax portal of the government.
- What is e-invoicing in the market?
As we go in the market any transaction which takes place between the buyer and seller is required to be prepared and reported towards the GST Portal and e-Way Bill.
- How to Generate E Invoice in GST Portal Online in India?
Except for the reporting part, the taxpayers need to generate the invoice as used to be done before and the reporting work is to be done electronically. The e-invoice scheme is to be followed by the taxpayers and submit the required details accordingly.
- How to create a unique IRN?
The creation of an IRN (Invoice Reference Number) requires various parameters that need to be followed and submitted to the seller including the GSTIN number, the document number and the fiscal year.
- What are the benefits of the E Invoice System?
Assists in data entry and data collection in a precise manner, Promotes business, Can also track the invoices, It is auto-populated from the tax returns and makes it an easy process, Transactions will be available from all the time and To build efficient manner of the administration of taxes.
Swati Raghuwanshi
Swati Raghuwanshi is a lawyer with a passion for transforming intricate legal intricacies into clear and accessible content. Through her writing, she tries to bridge the gap between complex laws and easy understanding, ensuring that everyone can navigate the legal landscape with confidence.
