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The concept of e-invoicing under GST, which refers to electronic invoicing, has gained significant importance among the business community since its approval by the GST council. In September 2019, during the council’s 37th meeting, the introduction of e-invoicing was approved with the main objective of ensuring the interoperability of e-invoices across the GST ecosystem.
E-invoicing is a reform related to invoices under the GST law. Certain GST-registered businesses, similar to using an e-way bill for transporting goods, are required to generate e-invoices for Business-to-Business (B2B) transactions.
BUSY offers a comprehensive e-invoicing solution for businesses of any size and industry, ensuring compliance with e-invoicing and e-way bill requirements.
E-Invoicing, or electronic invoicing, is a system that electronically authenticates B2B invoices and certain other documents for use on the common GST portal by the GSTN (Goods and Services Tax Network).
In its 35th meeting, the GST Council decided to implement e-Invoicing, initially targeting large enterprises and later expanding to include mid-sized and small businesses.
E-Invoicing does not involve generating invoices on the GST portal; instead, it requires submitting pre-generated standard invoices on a common e-invoice portal. This streamlines reporting by automating the process with a one-time input of invoice details. The CBIC (Central Board of Indirect Taxes and Customs) notified a set of common portals for e-invoice preparation through Notification No.69/2019 – Central Tax.
Under the GST e invoice system, an identification number is issued for each invoice by the Invoice Registration Portal (IRP), managed by the GSTN. The first IRP was launched by the National Informatics Centre at einvoice1.gst.gov.in.
All invoice information is transferred in real-time from the IRP to both the GST portal and the e-way bill portal. This eliminates the need for manual data entry when filing GSTR-1 returns and generating part-A of e-way bills, as the IRP directly provides the information to the GST portal.
Prior to the implementation of e-invoicing, businesses used various software to generate invoices, and the details of these invoices had to be manually uploaded in the GSTR-1 return or entered through ERP systems.
Once the suppliers filed the GSTR-1, the invoice information would be reflected in GSTR-2B for the recipients. In addition, consignors or transporters had to generate e-way bills by manually importing the invoice data in Excel or JSON format or through ERP systems.
With the introduction of the e-invoicing system, the process of generating and uploading invoice details remains the same. Businesses can import the data using Excel tools, JSON format, or through API integration, either directly or with the assistance of a GST Suvidha Provider (GSP). The e-invoicing system ensures seamless flow of data for GSTR-1 preparation and e-way bill generation. It serves as a crucial tool for enabling this streamlined process.
The applicability of e-invoicing under GST is determined based on the aggregate turnover of taxpayers. The applicability is divided into different phases, with each phase specifying a minimum aggregate turnover threshold and an applicable date.
Starting from the financial year 2022-23 and onwards, taxpayers are required to comply with e-invoicing if their turnover or e-invoice limit exceeds the specified threshold within any financial year from 2017-18 to 2021-22. It’s important to note that the aggregate turnover should encompass the turnover of all GSTINs associated with a single PAN across India.
For example, let’s consider the aggregate turnover of two companies, ABC Ltd and QPR Ltd, for the given financial years.
ABC Ltd:
Based on the above information, ABC Ltd’s aggregate turnover crossed the threshold limit of Rs. 20 crore in FY 2019-20. Therefore, regardless of the current year’s aggregate turnover, ABC Ltd is required to generate e-invoices from 01.04.2022.
QPR Ltd:
As QPR Ltd’s previous year’s (FY 2021-22) annual turnover exceeds Rs. 10 crore, they should comply with e-invoicing starting from 1st October 2022.
In summary, ABC Ltd needs to implement e-invoicing from 01.04.2022, while QPR Ltd should start e-invoicing from 1st October 2022.
There are certain categories of registered persons for whom e-invoicing will not be applicable at the moment, regardless of their turnover. These exemptions have been notified in CBIC Notification No.13/2020 – Central Tax, which has been amended periodically:
The implementation of e-invoicing initiated by GSTN brings several benefits to businesses, including:
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The process of generating or raising an e-invoice involves the following stages:
Until April 30, 2023, there is no specific time limit set by the GST systems or the GST law for generating e-invoices. However, starting from May 1, 2023, taxpayers with an Annual Aggregate Turnover (AATO) equal to or exceeding INR 100 crore must generate e-invoices for tax invoices and credit/debit notes within 7 days from the date of the invoice. Failure to comply will result in such invoices and CDNs being considered non-compliant.
For other applicable taxpayers, there is no defined time limit or period for generating e-invoices. However, it is advised for them to create e-invoices preferably a week before filing GSTR-1 returns, as it takes T+3 days for the e-invoice details to be auto-populated into GSTR-1.
On May 6, 2023, the department deferred the 7-day time limit to report old e-invoices on the IRP portals by three months. The new implementation date is yet to be announced by the department.
The concept of e-invoice encompasses the following documents, which need to be uploaded to the IRP system by their creators:
How to Register for an E-invoicing System?
Electronic invoicing (e-invoicing) has become an essential tool for businesses to streamline their billing processes, enhance efficiency, and contribute to a greener environment. If you’re looking to adopt this modern invoicing method, you’ve come to the right place. Here’s the simple and straightforward steps to register for an e-invoicing system.
Key Benefits of E-Invoicing:
Before diving into the registration process, let’s briefly discuss some of the compelling advantages of adopting e-invoicing:
Now, let’s get started with the registration process:
E-invoicing applies to business-to-business (B2B) transactions, export sales, and certain government transactions. It is mandatory for businesses with a turnover above a specified limit, covering sales invoices, debit notes, and credit notes, which are then reported to the GST portal.
E-invoicing generates a unique QR code for each invoice, ensuring authenticity. It makes real-time reporting mandatory, reducing the chances of unreported or fake invoices. This transparency helps authorities track transactions more efficiently, reducing the chances of tax evasion.
Mandatory fields for an e-invoice include:
Embracing technological advancements is key to staying competitive and efficient. BUSY’s cutting-edge e-Invoicing system is here to transform the way you manage your invoices.
Here’s how BUSY’s e-Invoicing system can significantly enhance your business processes and contribute to your success.
Incorporating BUSY’s e-Invoicing system into your business operations is a strategic move towards efficiency, accuracy, and growth. With streamlined processes, real-time connectivity, compliance assurance, and seamless integration, this innovative solution empowers you to navigate the modern business landscape with confidence. Embrace BUSY’s e-Invoicing system today and unlock a future of streamlined success.
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