E-invoicing under GST refers to using electronic invoices for business transactions, as specified by GST laws. Just like how GST-registered businesses need to create an e-way bill to transport goods, certain businesses also have to generate electronic invoices for Business-to-Business (B2B) transactions. This system is mandatory for those notified under GST regulations.
Clear is officially approved by GSTN as an Invoice Registration Portal (IRP). Over 3,000 large businesses trust Clear’s E-Invoicing solution to manage both e-invoicing and e-way bill compliance smoothly. We offer a top-notch e-invoicing solution that works well for businesses of any size and in any industry. Don’t miss out on checking out the Clear e-Invoicing solution!
Recent Updates
12th June 2023
Starting from July 15, 2023, the National Informatics Centre (NIC) requires that taxpayers with a turnover of more than Rs.100 Crore use two-factor authentication to log in. This new security measure applies to both the e-invoicing and e-way bill systems.
9th June 2023
The GSTN has introduced a new app called ‘e-Invoice QR Code Verifier’ on the Google Play Store, making it easy for users to check e-invoices quickly. This user-friendly app checks the data within the QR code and matches it with the printed information on the e-invoice. A version of the app for iOS devices will be released shortly.
May 10, 2023
The CBIC has announced the 6th phase of e-invoicing. From August 1, 2023, businesses with a turnover of over ₹5 Crore from any financial year since 2017-18 must start issuing e-invoices.
May 6, 2023
The GST department has extended the deadline for reporting old e-invoices on the e-invoice IRP portals by three months. A new date for this requirement will be announced later.
April 13, 2023
According to advisories from the GST Network on April 12 and 13, 2023, businesses with a yearly turnover of at least Rs.100 crore need to report tax invoices and credit-debit notes to the IRP within seven days of the invoice date, starting May 1, 2023.
January 30, 2023
The NIC’s e-invoice portal has been updated with several new features:
- Users can now select the POS state code of ’96-Other Country’ for items with HSN codes 9965 and 9968, which are related to transportation services.
- Only documents dated October 1, 2021, or later, will be processed on the portal.
- A new error code, 2295, has been added for duplicate requests, in addition to the existing 2150, indicating that an IRN has already been generated and registered with another IRP.
October 11, 2022
The GST Council plans to roll out the next phase of e-invoicing for businesses with a yearly turnover of over Rs.5 crore starting January 1, 2023. This might expand to include businesses with a turnover over Rs.1 crore by the end of the next fiscal year.
In terms of GST, what is e-invoicing?
‘E-Invoicing’ or ‘electronic invoicing’ is a system where business-to-business (B2B) invoices and some other documents are electronically approved by the GST Network (GSTN) for use on the common GST portal. This system was initially decided upon by the GST Council in its 35th meeting, initially targeting mostly large companies. Over time, it has been expanded to include medium and small businesses as well.
E-Invoicing doesn’t involve generating invoices directly on the GST portal. Instead, it affects uploading a standard invoice that has already been created, to a common e-invoicing portal. This process helps in automating reports for multiple purposes with just a single entry of invoice details. The CBIC has set up several official portals for submitting these e-invoices, as detailed in Notification No.69/2019 – Central Tax.
With this system, each invoice is given a unique identification number by the Invoice Registration Portal (IRP), which is managed by the GST Network and was first launched by the National Informatics Centre at einvoice1.gst.gov.in.
Once the invoice information is uploaded to this portal, it automatically gets sent to both the GST portal and the e-way bill portal instantly. This automation removes the need to manually enter the same data when filing GSTR-1 returns and when generating part-A of the e-way bills, because the information flows directly from the IRP to the GST portal.
Who is required to create an electronic invoice, and is it applicable?
Electronic invoicing, or e-invoicing, is typically required for larger businesses that meet certain turnover thresholds specified by GST regulations. As of the latest updates, any business with a turnover of more than Rs. 5 crore is required to create electronic invoices.
This requirement ensures that their invoices are standardized and easily integrated with the GST system. E-invoicing helps in accurate and timely tax reporting and reduces the chances of errors in the tax filing process.
Systems before & after e-invoicing
Before e-invoicing was introduced, businesses created invoices using different software programs. They then manually uploaded these invoice details into the GSTR-1 tax return or through their Enterprise Resource Planning (ERP) systems.
After suppliers have filed their GSTR-1, the details from these invoices will appear in the GSTR-2B for the recipients to view. For transporting goods, consignors or transporters needed to generate e-way bills by manually importing the invoices again, either in Excel or JSON format or through ERP software.
With the e-invoicing system, how businesses generate and upload invoices stays similar but become more streamlined. Invoices are still imported using Excel tools and JSON files or directly via API integration or a GST Suvidha Provider (GSP).
The significant change with e-invoicing is that once data is uploaded, it automatically flows into both the GSTR-1 preparation and e-way bill generation processes, making the entire procedure smoother and more integrated. This system not only saves time but also reduces the chance of errors.
Conclusion
E-invoicing under GST is a big step forward in simplifying and improving business operations in India. It automatically sends invoice information to both the GST and e-way bill systems, saving time and reducing mistakes.
Corporations of all sizes are now using this system, making tax processes smoother and less of a hassle. E-invoicing makes following tax rules easier and supports the goal of having a modern and digital tax system in the country.
It’s a positive change that helps businesses manage their taxes better and helps make the whole system more transparent and efficient.