‘E-invoicing’ or ‘electronic invoicing’ is a system where in the tax payer will upload his invoice details and register his supply transaction on the Government Invoice Registration Portal (IRP)and get the Invoice Reference Number (IRN) generated by the IRP system. That is, the tax payer will first prepare and generate his invoice using his ERP/accounting system or manual system and then upload these invoice details to IRP and get the unique reference number, known as IRN. It is clarified again that the e-invoice means NOT preparation or generation of tax payer’s invoice on government portal. It is only intimating the government portal that invoice has been issued to the buyer, by registering that invoice on the government portal.
The basic aim behind adoption of e-invoice system is to reduce the submission of multiple statements and details by the tax payers and help the purchaser to get the Input tax credit easily.
The GST Council has proposed that the electronic invoicing (e-invoice) system to be implemented in phased manner. First it will be implemented on a voluntary basis for taxpayers having turnover above Rs 500 Crores from 1st January 2020.
Registration of e-invoice of generation of IRN is the responsibility of the supplier, who will be required to report the invoice details to e-invoice system, which in turn will generate a unique Invoice Reference Number (IRN).
While the word invoice is used in the name of e-invoice, it covers other documents that will be required to be reported to e-invoice system by the creator of the document:
It may be noted that presently the Business to Consumer (B2C) invoices are not allowed for e-invoice/ IRN generation.
A supplier of goods or services or both is mandatorily required to issue a tax invoice. However, during the course of trade or commerce, after the invoice has been issued there could be situations like:
In order to regularize or correct these kinds of errors or situations, the supplier is allowed to issue what is called as debit note to the recipient, indicating the adjusted values. The debit note also includes supplementary invoice.
A supplier of goods or services or both is mandatorily required to issue a tax invoice. However, during the course of trade or commerce, after the invoice has been issued there could be situations like: The supplier has erroneously declared a value which is more than the actual value of the goods or services provided.
In order to regularize or correct these kinds of errors or situations, the supplier is allowed to issue what is called as credit note to the recipient. Once the credit note has been issued, the tax liability of the supplier will reduce.
The common portal for generation of e-invoice is https://einvoice1.gst.gov.in
Yes. All the registered users under GST who wish to generate IRN need to register on E-invoice system using his GSTIN. Once GSTIN is entered, the system sends an OTP to his registered mobile number registered with GST Portal and after authenticating the same, the system enables him to generate his/her username and password for the E-invoice system. After generation of username and password of his/her choice, he/she may proceed to make entries to generate IRN.
No, Users who are already registered on the e-way bill portal need not to again register on the e-invoice system. User can use EWB login credentials to login at e-invoice system.
This is indicating that you (your GSTIN) have already registered on the E-invoice system or e-way bill system and have created your username and password on the e-way bill or e-invoice system. Please use these credentials to log into the e-invoice system. If you have forgotten username or password, then please use the ‘Forgot Username’ or ‘Forgot Password’ facility provided on the portal to recollect your username or create new password accordingly.
This is indicating that e-invoice system is unable to get the contact details (mobile number of email address) for your GSTIN from the GST Common Portal (www.gst.gov.in). Please contact GST helpdesk 0120-4888999.
This is indicating that the GSTIN entered by you is wrong or your GSTIN details are not available in the GST Common Portal. Please check the GSTIN entered or go to the GST portal (www.gst.gov.in) and check the details of your GSTIN under ‘Search Taxpayer’ tab.
This is indicating that you might have updated your business registration details in the GST Common Portal recently. Please ‘Update from Common Portal’, to pull the latest data from the GST Common Portal. If even after this action, wrong data is displaying, kindly update the details in GST common portal through amendment process.
The GST Council has proposed that the electronic invoicing (e-invoice) system will be implemented on a voluntary basis for taxpayers having turnover above Rs 500 Crores from 1st January 2020. SO Initially business having turnover of 500 Crores can register at e-invoice system and generate IRN.
This is indicating that you are trying to login to the E-invoice system with incorrect username and password. Please check the username and password being used to login to the system. If you have forgotten the username or password, then please use the ‘Forgot Username’ or ‘Forgot Password’ facility provided on the portal to recollect your username or create new password accordingly.
This is indicating that your account has been frozen because you might have cancelled your registration or your GSTIN has been de-activated in the GST Common Portal. Please visit the GST Common Portal (www.gst.gov.in) to find the status of your GSTIN under ‘Search Taxpayer’ tab. In case you are able to log in on GST portal but not log on E-invoice portal, please lodge your grievance at https://selfservice.gstsystem.in/.
This is indicating that you had tried to login to the E-invoice system with incorrect username and password for more than 5 times. Hence, the system has blocked your account for security reasons and it will be unblocked after 5 minutes.
If you have forgotten the username or password, then use the ‘Forgot Username’ or ‘Forgot Password’ facility provided on the portal to recollect your username or create new password accordingly. The user needs to enter some details after authenticating the same via an OTP, then, user will be provided with the username and password.
The Invoice Reference Number (IRN) is a unique number (also known as hash) generated by the e-invoice system using a hash generation algorithm. For every document such as an invoice or debit or credit note to be submitted on the e-invoice system, a unique 64 characters Invoice Reference Number (IRN) shall be generated which is based on the computation of hash of GSTIN of supplier of document (invoice or credit note etc.), Year and Document type and Document number like invoice number. This shall be unique to each invoice and hence be the unique identity for each invoice for the entire financial year in the entire GST System for a taxpayer.
To generate IRN user have to login e-invoice system and select ‘generate new’ option under e-invoice. User has to furnish transaction details, Bill to-Ship to details and Item details according to the document in hand and click generate. E-invoice system will generate 64 characters length IRN with a digitally signed e-invoice and QR code.
No, only unique invoice from a taxpayer will be accepted by the e-invoice system. E-invoice system will check ini Central Registry of GST system to ensure that same invoice from same supplier pertaining to same financial year is not being uploaded again for generating one more IRN.
Reverse Charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply.
B2B invoice is a transaction that is taking place between two registered businesses. Business-to-Business (B2B) means that one is selling a product or service to other Business house. In B2B transaction, the customer is also registered person and is eligible to take ITC. User should select B2B category when he has invoice dealing with another Business.
Business-to-Government (B2G) invoice is transaction occurred between a Business to the government agencies. It includes the business model that refers to businesses selling products, services to government departments or government agencies. Here, the government department or agency means registered TDS Authorities. The tax payer should select B2G category when they have invoice dealing with government agencies
Once the e-invoice system has validated and registered an invoice, it will be made available to the taxpayer for reference on e-invoice system for only 24 hours.
If state name is not auto-populated, then select the correct state and continue IRN generation.
Sometimes, the tax payer raises the bill to one and sends the consignment to somebody else as per the business requirements. There is a provision in the e- invoice system to handle this situation, called as ‘Bill to - Ship to’. In the e-invoice form, there are two portions under ‘TO’ section. In the left hand side - ‘Billing To’ GSTIN and trade name of the buyer is entered and in the right hand side - ‘Shipping to’ address. The other details are entered as per the invoice.
Sometimes, the supplier prepares the bill from his business premises to consignee, but the consignment is moved from some others’ premises to the consignee as per the business requirements. This is known as ‘Bill From - Dispatch From’. e- Invoice system has provision for this. In the e-invoice form, there are two portions under ‘FROM’ section. In the left hand side - ‘Bill From’ supplier’s GSTIN and trade name are entered and in the right hand side - ‘Dispatch From’, address of the dispatching place is entered. The other details are entered as per the invoice.
The pre-requisite for generation of e-invoice is that the person who generates e-invoice should be a registered person on GST portal and e-invoice system or e-way bill system. The documents such as tax invoice or bill of sale or Debit Note or credit Note must be available with the person who is generating the e-invoice. If a user is generating Bulk invoices, then he/she should have a valid JSON file as per the e-invoice schema to upload on the e-invoice system.
Anyone can verify the authenticity or the correctness of e-invoice by uploading the signed JSON file or Signed QR Code into e-invoice system.
The digitally signed invoice is one which has been digitally or electronically signed by the IRP after receiving the invoice upload from the supplier. That is, the government is authenticating the genuineness of the invoice submitted/registered by the tax payer.
The digitally signed QR code of the invoice is one which has been digitally or electronically signed and prepared the QR Code by the IRP after receiving the invoice upload from the supplier. That is, the government is authenticating the genuineness of the invoice, by preparing the important information of the invoice in QR Code form and signing it so that it can be genuineness of the invoice can be verified offline by anyone using offline tools. The E-invoice will generate a QR code, containing some important parameters of invoice and digital signature of it so that it can be verified on the central portal as well as by an Offline App. This will be helpful for tax officers checking the invoice on the roadside where Internet may not be available all the time. The web user will get a printable form with all details including QR code. The QR code will consist of the following e-invoice parameters:
The IRN once generated cannot be modified or deleted. However, if IRN is generated with wrong information, it can be cancelled and generated afresh. The cancellation is required to be done within twenty four hours from the time of generation.
If there is a mistake, incorrect or wrong entry in the e-invoice, then it cannot be edited or corrected. Only option is cancellation of e-invoice and generation of a new one with correct details.
Many of the businesses have multiple places of business or head office and branch at different locations or work remotely from the principal place of business. Generating IRN with a single login may be a challenge for them. To overcome this challenge business can create multiple sub-users. A sub-user can use the same login credentials created originally and perform the actions as per the access that is given to them. For example, a sub-user may be allowed to generate IRN and restricted to accept IRN.
Most of the times, the tax payer or authorized person himself cannot operate and generate IRN’s. He will be dependent upon his staff or operator to do that. He would not like to avoid sharing his user credentials to them. In some firms, the business activities will be operational 24/7 and some firms will have multiple branches. Under these circumstances, the main user can create sub-users and assign the roles to them. He can assign generation of IRN or report generation activities based on requirements. This facility helps him to monitor the activities done by sub-users. However, the main user should ensure that whenever employee is transferred or resigned, the sub-user account is frozen / blocked to avoid mis-utilisation.
For every principal/additional place of business, user can create maximum of 10 sub-users. That is, if tax payer has only (one) principal business place (and no additional place of business), he can create 10 sub-users. If tax payer has 3 additional places and one principal place of business ( ie 4 places), then he can create 40 (4 X 10) sub users.
The e-invoice system gives an option to the taxpayer to freeze the sub-user i.e Disable the sub-user from using facilities on the e-invoice system. Step 1: Click ‘Freeze Sub-user’ under the option ‘User Management’ on the left-hand side of the dashboard Step 2: Select the sub-user you want to Freeze, the below screen opens up. Now click on ‘Freeze’ button appearing at the bottom of the screen. On clicking the ‘Freeze’ button, The sub-user will no longer be able to access any facilities on the e-invoice system.
The registered person can generate the IRN from his account from any registered business place. However, he/she needs to enter the address accordingly in the e-invoice form. He/she can also create multiple sub-users and assigned to these places and generate the IRN accordingly.
The user is allowed to generate report on daily basis. Because of criticality of the system for performance for 24/7 operation, the reports are limited to be generated for a day. The user can change date and generate the report for that date. Hence, the user is advised to generate report daily and save in his system.
Multiple modes given below are envisaged at this stage under the proposed system for e-invoice, through the IRP (Invoice Registration Portal)/e-invoice system: • Web based, • API based, • Mobile app based, • Offline tool based and • GSP based.
Steps to generate Bulk e-invoice: • Step 1: Login on the e-invoice portal using the username password and entering the captcha code. • Step 2: Select ‘Bulk Upload’ under 'E-Invoice' appearing on the left-hand side of the dashboard. • Step 3: Choose the saved JSON file from your system and click 'Upload’. After processing the JSON file the system generates list of e-invoice or error message.
The taxpayer has to register the IMEI (International Mobile Equipment Identity) number of the mobile phones through which he intends to generate IRN on the e-invoice system. Please see the user manual for Mobile App based IRN generation available on the portal for further details.
The mobile app is not available in Play Store or App Store. The main user has to login and select the ‘for mobile app’ under registration menu at e-invoice system. The system asks to select the user/sub-user and enter the IMEI number of the user. Once it is entered, the concerned user gets the link in his registered mobile to download the app through SMS. Now, the user has to download the app by clicking that link and enable it to get installed on the mobile.
Through this facility, user can upload multiple invoices and generate multiple e-invoices at one go. This facility can be used by the taxpayers, who can prepare bulk requests for IRN in a JSON file from their automated system, and upload it on the e-invoice system and generate IRN in one go. This avoids duplicate data entry into e-invoice system and avoids data entry mistakes also.
To use the bulk generation facility, one has to prepare the IRN requests through JSON file. This can be done in two ways – registered taxpayer can prepare the JSON file directly from his automated system. If he is unable do so, he can use excel based bulk generation tool available on the e-invoice portal. The invoice and other details need to enter as per the format and JSON file can be generated. This JSON file needs to be uploaded in the e-invoice portal for generation of multiple IRN. For more details, please refer to the ‘user manual of the bulk generation’ and ‘bulk generation tools’ under “Tool” section at E-invoice portal and follow the instructions.
Benefits of the bulk generation facility are as follows: • Generation of multiple IRN in one go • It avoids duplicate keying in of the invoices to generate IRN • It avoids the data entry mistakes while keying in for generation of IRN
The integration between e-invoice system and registered person's system can be done through APIs. For availing this facility, the registered person should register the server details of his/her systems (through which he wants to generate the IRN using the APIs of e-invoice system) with e-invoice system. For further details, please go through the user manual.
API interface is a site-to-site integration of two systems. Using this, the taxpayer can link his IT system with E-Invoice system to generate IRN directly from his IT solution without keying in the details for e-invoice form in the Portal. This reduces duplicate data entry and eliminates the data entry mistakes.
API interface is a site-to-site integration of website of taxpayer with the E-invoice system. API interface can be used by large taxpayers, who need to generate bulk INR’s per day. However, the taxpayer should meet the following criteria to use the API interface: • His invoicing system should be automated with IT solutions. • He should be ready to change his IT system to integrate with E-invoice system as per API guidelines. • His system should have SSL based domain name. • His system should have Static IP Address. • He should have pre-production system to test the API interface.
Yes, E-invoice system has a reverse charge mechanism reporting as well
There will not be any separate invoice formats required for Traders, Medical Shops, Professionals and Contractors. Same e-invoice schema will be used by all kinds of businesses. The schema has mandatory and non-mandatory fields. Mandatory field has to be filled by all taxpayers. Non-mandatory field is for the business to choose. It covers all most all business needs and specific sectors of business may choose to use that non-mandatory field which are needed by them or their eco-system.
No, the transporter details must be entered in the E-Way bill system only.
Here are the steps to follow: Step 1: Login on the e-invoice portal using the username password and entering the captcha code. Step 2: Select ‘Print’ under 'E-Invoice' appearing on the left-hand side of the dashboard. Step 3: Enter the 64 character length invoice reference number and click ‘Go’
Yes, it allows the declaration of export invoices / zero rated supplies.
For transportation of goods, the e-way bill will continue to be mandatory, based on invoice value guidelines. This aspect will be notified by the Government.
Yes, the e-invoice schema also caters to the export invoices as well. The e-invoice schema is based on most common standard format and it meets the requirements of the export as well.