Common Mistakes While Creating An E-Invoice
The government has expanded the use of electronic invoicing to companies with annual revenue of more than Rs 10 crore, effective October 1, 2022. As more and more businesses move towards e-invoicing, it’s important to recognise and avoid common mistakes that can occur during the process. E-invoicing is a digital method of invoicing that streamlines invoicing processes, reduces errors, and enhances efficiency.
However, errors can still occur while creating e-invoices, leading to delayed payments, frustrated customers, and even legal implications. In this context, it’s essential to understand some common mistakes while creating an e-invoice to ensure a smooth and error-free invoicing process.
Mistakes While Creating E-Invoices
Businesses sometimes make mistakes while generating e-invoices, which can be avoided if the data entered is reviewed correctly. Here are some of the common errors that occur during the generation of e-invoices and measures to avoid them.
| Error Code for E-Invoicing | Error Message | Reason for E-invoicing Error | Resolution |
| 2150 | Duplicate Invoice Reference Number | Attempt to submit an invoice that is already registered with the IRP and the IRN is generated. | Sending duplicate requests at the same time will cause this error. Wait for the IRN before updating the system. Reply to the request only if the IRN is not obtained. |
| 2172 | Only CGST and SGST amounts are applicable for intra-state transactions; IGST amounts are irrelevant for certain commodities. | For intrastate transactions, the IGST amount is entered in place of the CGST and SGST. | Verify again whether taxes apply to the transaction. CGST and SGST are applicable if the recipient and supplier’s Point of Supply (POS) State codes are the same.If IGST is applicable, enter the appropriate amount and mark intra-state transactions as “Y.” |
| 2176 | Invalid HSN code(s) | An incorrect HSN code has been entered. | Check the HSN code twice before adding it. Sending the HSN to the help desk for confirmation is another way to confirm it. |
| 2182 | The taxable value of all goods must equal the total taxable value. | If the total taxable values of the various line goods and the total taxable value of the uploaded invoice don’t match. | Verify the total taxable value equals the total taxable value of each line good in the uploaded invoice. |
| 2189 | Invalid total invoice value | If the uploaded invoice’s total invoice value differs from the total value of each line item. | Verify again that the total invoice value corresponds to the value of each line item. After considering additional fees and discounts, the invoice is uploaded with a (+/-) one tolerance limit. |
| 2193 | For HSN – {0} and Sl. No – {1}, AssAmt value should be equal to (TotAmt – Discount). | For that specific item, incorrectly assessable amounts have been recorded. | The assessable value for that specific item should be determined by subtracting the discount from the total cost. |
| 2194 | For HSN – {0} and Sl. No – {1}, AssAmt value should be equal to (TotAmt – Discount). | The total value of entered item is incorrect. | Ensure that the item’s worth equals the sum of the assessable value plus all applicable taxes, cess, and other fees. |
| 2211 | GSTINs for the supplier and the recipient shouldn’t match. | Both the customer and the provider are given the same GSTIN. | E-invoice generation is not permitted for self-generated invoices. |
| 2212 | For supplies of type {0}, the recipient GSTIN cannot be a Unregistered person. | Unregistered person-related invoices are entered as a B2B transaction. | Type the correct GSTIN. |
| 2227 | HSN – {0} and SI No. {1} should have equivalent SGST and CGST amounts. | The CGST and SGST amounts for the specific item do not match. | Make sure that the CGST and SGST amounts are equal. |
| 2233 | Duplicate SI numbers in items are not permitted. | There are several serial numbers issued for various objects in the item list. | Each line item should have a specific serial number. |
| 2234 | For HSN – 0 and Sl. No – 1, the SGST and CGST amounts are invalid. | For the given item, incorrect SGST and CGST amounts have been submitted. | Ensure that the SGST and CGST amounts are entered correctly. |
| 2235 | Enter an IGST amount with HSN -{0} and Sl. No {1} in invalid. | The selected item in the item list has the incorrect IGST amount passed. | Ensure that for each line item, SGST and CGST equal (taxable value (x) tax rate/2). A maximum tolerance of +/- 1 is permitted. |
| 2240 | GST rates for Sl. No. {1} and HSN -{0} are invalid. | The GST rate is entered incorrectly. | Be sure to input the appropriate GST rate for each line item. |
| 2244 | Recipient Pincode is mandatory for the transaction -{0} | if the recipient’s Pin code is not provided. | Provide the recipient’s PIN. |
| 2265 | State code entered in recipient details and recipient GSTIN state code must match. | If the recipient the information does not match the state code and the GSTIN’s first two digits. | The state code entered should match the first two digits of the GSTIN under the recipient details. |
| 2275 | The recipient PIN code for direct export should be 999999. | The PIN code for recipient information for export transactions should be 999999. | Make sure the Pin code you enter is 999999 for only those transactions. |
| 3028 | The invoice system does not contain a GSTIN. | The e-invoice system does not contain the recipient’s GSTIN. | Make sure the GSTIN is accurate. Click on the API that says “Sync GSTIN from GST CP” if the taxpayer is certain it is accurate. When you have the information, you can resend the IRN-generating request using the GSTIN that is available in the GST portal. Verification through the API was unsuccessful: in this instance, one may manually check the status by visiting the e-invoice portal and selecting the ‘Taxpayer/ GSTIN’ option from the search drop-down box. |
| 3029 | GSTIN is not active. | GSTIN is cancelled or inactive. | Make sure the GSTIN is correct. Click on the option that says “Sync GSTIN from GST CP” if the taxpayer is certain it is accurate. When you have the information, you can resend the IRN-generating request using the GSTIN that is available in the GST portal. Verification via the API was unsuccessful; in this instance, one may manually check the status by visiting the government e-invoice portal and selecting the ‘Taxpayer/ GSTIN’ option from the search drop-down box. |
Taxpayers can evaluate the commonly occurring error messages and potential fixes described above to ensure a smooth installation of e-invoicing systems.
Conclusion
E-invoicing is a powerful tool that can enhance efficiency, streamline invoicing processes, and improve business cash flow. However, common mistakes during the creation of e-invoices can lead to various issues, from delayed payments to legal repercussions. By understanding and avoiding these common mistakes, businesses can ensure a smooth and error-free e-invoicing process, thereby maximising the benefits of this digital invoicing method.
