eInvoicing Under GST: What is eInvoicing, its Purpose, and Applicability?

Recently, the Central Board of Indirect Taxes and Customs (CBIC) declared that eInvoicing under GST will apply to taxpayers with an aggregate turnover of over 20 crores.

Many questions may arise in your mind, how do you recognize whether eInvoice applies to your business? Do eInvoice under the GST portal need to be in a specific format? Is it applicable for POS sale bills? Well, eInvoice software can be a feasible solution for all your needs, streamlining the course for IRN/QR code generation, sharing invoices, managing eWay Bills, and smooth ITC claim.

In this comprehensive guide, we will discuss everything you need to know about the eInvoicing system. Let’s get started!

What is eInvoicing?

eInvoicing is a real-time authentication process for B2B invoice transactions by the GST portal to easily integrate input tax credit, GST filling, and e-way billing systems. The purpose of eInvoice is to prevent data reconciliation between buyers and sellers under the GST input tax credit system by minimizing mismatch errors.

Key takeaways of eInvoicing:
• Fast and secure input tax credit
• Transparency and traceability
• Uniform invoice format and content
• Curbing tax evasion – reduce frauds and manipulations
• Easy tracking of tax-compliant invoices between buyer, seller, and government authorities
• Portal validation that reduces manual errors

Purpose of eInvoicing:
• Creation – Prepare invoice within your ERP or billing system
• Conversion – Transform invoice data into government-stipulated JSON format files
• Transmission – Upload JSON into IRP through authorized GSPs
• Validation – Verification of JSON by IRP portal
• Generation – IRP authentication of invoice by generation IRN/QR code
• Integration – Download digitally signed JSON into ERP/POS
• Inclusion – Print eInvoices by ERP including IRN and QR code
• Communication – Exchange of data from IRP to GST portal
• Automation – auto eInvoice data transfer to eWay Bill, GSTR-1, and GSTR-2B

What are the ways through which eInvoice can be generated?
• GST provided offline tool
• GST Suvidha Provider (GSPs)
• Application service providers enabled with GSPs
• Registered ERPs
• Direct integration
• API of GSTIN
• eWay Bill API credentials

It is vital to look for a reliable eInvoice service provider to acquire an end-to-end solution for POS billing, eInvoicing, GST filing and returns, accounting, and eWay Bills.

What is the QR code in GST eInvoice?

A quick response (QR) code is a two-dimensional barcode generated by the IRP portal for every valid eInvoice success. The QR code encompasses digitally signed invoice details verified by the QR code app. It contains details like buyer GSTIN, seller GSTIN, document number/type/date, total invoice value, the total number of line items, and IRN number/date.

Who is eligible for eInvoice?

Every GST registered person or taxpayer whose aggregate turnover in a financial year exceeds the stated threshold shall prepare for eInvoice to supply goods or services, both to a registered person or entity. Exemptions include banking companies, insurance companies, financial institutions, NBFCs, good and transport agencies (GTAs), special economic zone units, and passenger transportation service providers.

Can you make corrections or amendments to eInvoice after IRN generation?

Once IRN is generated, you can’t make changes in the IRP portal, but you can cancel it. It is only allowed within 24 hours of IRN generation. Beyond this, you need to raise a debit or credit note against the invoice either fully or partially. There are also some provisions to make modifications to eInvoice using the GSTR-1 return of the GST portal.

Generate eInvoice with TaxPro GSP within your existing ERP or billing System

TaxPro GSP is a fully integrated and seamless eInvoicing API that allows you to perform bulk eInvoice operations while managing the entire communication with the GST. It comes with API libraries for .NET and Java, alongside complete integration source code.

Here’s how TaxPro GSP can help you:
• Upload invoice data in bulk
• Send invoice information to IRP and generate eInvoice in real-time
• Manage multiple GSTINs under a single hierarchy
• Generate eInvoices and eWay Bills on a single platform
• Print eInvoices with QR code
• Share invoices with vendors

Schedule a demo today and see how it helps you with the eInvoicing solution.

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