e-Invoicing Steps – A Comprehensive Guide

Introduction:

e-Invoicing is a significant step towards streamlining GST compliance in India. It involves reporting details of specified GST documents to a Government-notified portal, known as the Invoice Registration Portal (IRP), and obtaining an Invoice Reference Number (IRN). This guide to e-Invoicing Steps provides a detailed overview of the e-invoicing process, its applicability, exemptions, and the steps involved.

A. Introduction to e-Invoicing and e-Invoicing Steps:

e-Invoicing means reporting details of specified GST documents to a Government-notified portal (IRP) and obtaining an IRN. It does not mean generating invoices through a Government portal. Taxpayers continue to create their GST invoices using their own Accounting/Billing/ERP Systems. These invoices are then reported to any of the six authorized IRPs in a standard format (Schema) notified as Form GST INV-1. Generating IRNs on these portals is free of charge.

B. Applicability of e-Invoicing:

e-Invoicing is applicable to taxpayers whose aggregate turnover exceeds the notified limits (based on PAN) in any preceding financial year since 2017-18. As per the relevant notification, the current threshold is ₹5 crore and above, effective from August 1, 2023.

Certain taxpayers or entities are exempted from e-Invoice reporting as per relevant notifications. Taxpayers should refer to the respective notifications for detailed information on exemptions.

1. Banks, Insurance Companies, and Financial Institutions, including NBFCs.
2. Goods Transport Agencies (GTAs).
3. Passenger Transport Services.
4. Suppliers of Services by way of admission to the exhibition of films.
5. Special Economic Zones (SEZ) Units (Note: SEZ Developers are not exempt)

D. Documents Covered Under e-Invoicing:

e-Invoicing covers GST invoices, Credit Notes, and Debit Notes for B2B Supplies, Supplies to SEZs (with and without payment), Exports (with and without payment), and Deemed Exports.

E. Process of e-Invoicing:

1. Invoice Creation: Taxpayers create their GST invoices using their own Accounting/Billing/ERP Systems.
2. Reporting to IRP: These invoices are reported to any of the six authorized IRPs.
3. IRN Generation: Upon reporting, the IRP returns a signed e-Invoice with a unique IRN and a QR Code.
4. Issuing Invoice: The invoice (with QR Code) is then issued to the receiver. A GST invoice for B2B transactions is valid only with a valid IRN.

F. e-Invoice steps for Reporting:

Step 1: Enablement for e-Invoicing:

1. All eligible taxpayers are automatically enabled for e-invoicing on any of the six authorized IRP portals.
2. Check the enablement status at the e-Invoice Portal.
3. If not enabled, taxpayers can self-enable at the same portal.
4. Note: Enablement status does not automatically mean a taxpayer is legally obligated to do e-Invoicing. It ensures only taxpayers with notified turnover limits can register and report invoices on IRPs.

Step 2: Register on an Invoice Registration Portal:

1. The IRP is the website for uploading/reporting invoices by notified persons. Six IRP portals are currently active for reporting e-Invoices and generating IRNs, free of charge.
2. List of authorized portals:
   • einvoice1.gst.gov.in
   • einvoice2.gst.gov.in
   • einvoice3.gst.gov.in
   • einvoice4.gst.gov.in
   • einvoice5.gst.gov.in
   • einvoice6.gst.gov.in
3. Enabled taxpayers must register on any of the six IRPs before reporting e-Invoices. This involves a one-time verification of the taxpayer’s registered mobile number and email through an OTP.
4. Upon successful validation, login credentials for the IRP portal are created, and the taxpayer is ready to report e-Invoices.

Step 3 & 4: Reporting and Auto-population of e-Invoice:

1. To receive an IRN for their e-Invoices, taxpayers must report the data of e-Invoices on the IRP portal using the predefined INV-01 schema in a JSON format.
2. Most IRPs provide functionalities for reporting e-Invoices via offline tools, online web tools, mobile apps, and API-based methods.
3. The schema and the portal have built-in validations to prevent duplicate reporting and other checks.
4. Upon successful validation, a signed e-Invoice, carrying a unique IRN and a QR code, is returned to the taxpayer.
5. A copy of this invoice is then shared with the GST system for auto-population in the supplier’s GSTR-1 return.
6. Issue the e-Invoice with IRN details to the buyer.

G. e-Invoice Verification:

1. To verify the IRN of an e-Invoice, taxpayers have multiple options:
   • Use the GSTN e-Invoice QR Code Verifier app, available on Google Play / App Store, to verify e-Invoices reported on any of the IRPs.
   • Alternatively, use the “Search IRN” functionality available at e-Invoice Portal.

H. e-Invoice Master Information Portal:

1. As the number of IRP portals has increased to six, GSTN has developed a comprehensive e-Invoice master information portal, accessible at e-Invoice Portal.
2. This portal serves as a one-stop resource for all e-invoicing-related information. It offers access to master codes, the ability to check enablement status, search IRN functionality, information about all the IRPs along with links to their respective portals, the e-invoice schema, and more.
3. In the near future, this portal is also expected to provide the functionality to download e-Invoices.

Conclusion:

e-Invoicing is crucial to enhancing GST compliance and streamlining the invoicing process. By following the steps outlined in this guide, businesses can ensure they are compliant with the latest e-invoicing regulations. Our TaxPower GST Billing module has the capability of Generating invoices, Importing Invoices in bulk, and uploading e-invoices in bulk. TaxPower GST – billing module is a unique e-invoicing tool that has a good capability of uploading e-invoices seamlessly.

Hope, this guide for e-Invoicing steps will be useful to you.

Blog Ref: GSTN Government Site