GST

Why & How to Generate a GST e-Invoice

The introduction of e-invoicing in GST will help streamline tax collection and deduction in India by eliminating outdated pen-and-paper systems. The e-invoice system enables businesses to save time and money while also reducing the compliance burden on them. 

India has been trying to introduce digital payment systems in recent years to streamline tax collection and deduction. The introduction of the e-invoice under the GST regime will help the country usher in a digital era by moving away from conventional pen-and-paper systems. The GST e-invoice system helps businesses save time and money and increase their efficiency. 

Additionally, e-invoicing in GST will go a long way in reducing the overall burden of compliance. It eliminates the duplication of information and its transfer from one system to another. You definitely can benefit from the e-invoicing system on the GST portal.

What Is the GST e-Invoice System?

The GST e-invoice system is a digitisation scheme that will make it easier for businesses to maintain tax-related compliance. The system supports the auto-population of fields, reducing duplication of effort and saving time. The GST e-invoice option will generate an Invoice Reference Number for invoices generated for a GSTN. 

The system will then use these details to auto-populate several systems, GST refund and return forms, and eWay bills. As a result, the e-invoice feature in GST will improve the ease of doing business by reducing the compliance burden.

GST e-Invoicing Implementation 

The 35th GST Council Meeting, which occurred in June 2019, discussed the proposal for implementing a GST e-invoice system. At that meeting, the officials decided to launch a pilot scheme by January 2020 to facilitate the online B2B e-invoice generation. However, the GST e-invoice implementation date was extended owing to several issues

As of 1 April 2021, the third phase of the e-Invoice has been implemented to apply to businesses with an annual turnover of 50 crores or above in the previous financial year.

Benefits of e-Invoice in GST

  1. Aid in transforming taxation by providing a defined standard for invoices
  2. Standardise invoice generation and submission across GST platforms
  3. Enable cross-platform compatibility, leading to higher efficiency
  4. Eliminates the need for unnecessary data transfer and re-entry
  5. Helps make the flow and processing of input tax credit seamless
  6. Improves the ease of doing business by eradicating the need to compile invoices 
  7. Reduces the burden of compliance on businesses

Before registering for GST, calculate the GST amount that needs to be paid using our GST calculator.

Features of the e-Invoice System on the GST Portal

  1. The e-invoice system in GST will enable taxpayers to generate an Invoice Reference Number for every invoice. Taxpayers can then reference this unique ID on every invoice issued.
  2. The Invoice Reference Number, better known as IRN, is a 64-character long unique ID for all invoices generated. The GST Invoice Registration portal will issue such a number for every successful e-invoice upload. All registered suppliers and dealers have to mention the IRN on their invoice to comply with regulations.
  3. As per the GST Council, there will be no fixed format for the e-invoices. The most significant change is that the GST e-invoice system allows for the seamless flow of data. As per the regulations, the new regime will make it easier to transmit electronic data to the GSTN invoice portal. 
  4. The system will generate an IRN and a QR code on the successful submission of an invoice. Suppliers have to ensure they print out this QR code on their invoice. So, suppliers can keep using their billing methodology to raise GST compliant invoices. The QR code used by the GST e-Invoice system will contain the following details:
  • GSTIN of both the supplier and recipient
  • Invoice number, date, and value
  • Number of items
  • HSN code of the item with the highest value
  • Invoice Reference Number (IRN)
  1.   The Invoice Registration Portal will help with issuing IRNs. The government has made the NIC India’s first IRP. As the user base increases, the government will create more IRPs to improve the efficiency of the distributed architecture.

How to Generate an e-Invoice in GST Portal

  1. First and foremost, dealers and sellers have to create an invoice using their accounting or billing software. They must make sure that the invoice generated follows all the invoicing standards introduced by the government.
  2. Next, taxpayers must transmit the invoice generated in JSON format to the GST Invoice Registration Portal: https://reg.gst.gov.in/registration/
  3. Individuals can use APIs and other offline tools to transmit the invoice to the portal in the prescribed JSON format.
  4. The system will then review the invoice submitted to ensure there is no duplication or other errors. Once validated, the IRP system will add a digital signature to the invoice, generate an IRN and QR code for the invoice. 
  5. The portal will then send this digitally signed invoice to the seller with an IRN, making it a valid GST e-invoice. Additionally, the GST e-invoice system will share details of the signed invoice with the eWay portal and GSTN system.

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