Common Mistakes While Creating An E Invoice

The government has expanded electronic invoicing to companies with more than Rs 10 crore annual revenue, effective October 1, 2022.  As more businesses move towards e-invoicing, it’s essential to recognise and avoid common mistakes that can occur during the process. E-invoicing is a digital method of invoicing that streamlines 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.

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    Mistakes While Creating E Invoices

    Businesses sometimes need to correct things while generating e invoices, which can be avoided if the data entered is reviewed correctly. Here are some common errors that occur during the generation of e invoices and measures to prevent them. 

    Error Code for E-InvoicingError MessageReason for E-invoicing ErrorResolution
    2150Duplicate Invoice Reference NumberAttempt to submit an invoice 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.
    2172Only CGST and SGST amounts are applicable for intra-state transactions; IGST amounts are irrelevant for certain commodities.The IGST amount is entered in place of the CGST and SGST for intrastate transactions.
    		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.”
    2176Invalid HSN code(s)An incorrect HSN code has been entered. Please check the HSN code twice before adding it. You can also send the HSN to the help desk to confirm.
    2182The 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.
    2189Invalid total invoice valueIf 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.
    2193For 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.
    2194For HSN – {0} and Sl. No – {1}, AssAmt value should be equal to (TotAmt – Discount).The total value of the entered item needs to be corrected.
    		Ensure that the item’s worth equals the sum of the assessable value plus all applicable taxes, cess, and other fees.
    2211GSTINs 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.
    2212For 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.
    2227HSN – {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.
    2233Duplicate 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.
    2234For 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.
    2235Enter 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.
    2240GST 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.
    2244Recipient Pincode is mandatory for the transaction -{0}if the recipient’s Pin code is not provideMake sure the PIN code you enter is 999999 for only those transactions.d.Provide the recipient’s PIN.
    2265The state code entered in the recipient details and the recipient GSTIN state code must match.If the recipient’s 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.
    2275The 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.
    3028The 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 sure it is correct.
    When you have the information, you can resend the IRN-generating request using the GSTIN 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.
    3029GSTIN is not active.GSTIN is cancelled or inactive.Make sure the GSTIN is correct. Click on the option “Sync GSTIN from GST CP” if the taxpayer is sure it is accurate.
    When you have the information, you can resend the IRN-generating request using the GSTIN 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 software.

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    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.

    Frequently Asked Questions

    • What are some common mistakes while creating an e invoice?
      One of the most common mistakes when creating an e invoice is entering incorrect or incomplete buyer details, such as GSTIN, address, or email. This can lead to compliance issues and delays in processing payments.
    • How can mistakes while creating an e invoice affect my business?
      Mistakes while creating an e invoice can result in penalties, payment delays, and issues with GST reconciliation. Ensuring accuracy helps maintain smooth business operations and compliance.
    • What are the common mistakes regarding invoice numbers when creating e invoices?
      Common mistakes when creating e invoices include using duplicate or incorrect invoice numbers. Each e invoice must have a unique number to avoid confusion and compliance issues.
    • How can I avoid mistakes while creating e invoices related to product descriptions?
      Ensure product descriptions are detailed and accurate to avoid mistakes while creating e invoices. Include correct HSN codes and descriptions to prevent mismatches during GST filing.
    • What mistakes creating an e invoice can lead to rejections?
      Incorrect GSTIN, mismatched totals, and missing mandatory fields like invoice date, place of supply, or recipient details can lead to rejections when creating an e invoice.
    • How do common mistakes while creating an e invoice impact GST compliance?
      Common mistakes while creating an e invoice, such as incorrect tax calculations or HSN codes, can lead to GST compliance issues, resulting in fines and increased scrutiny from tax authorities.
    • What are the common mistakes when creating e invoices related to tax rates?
      Common mistakes when creating e invoices include applying incorrect tax rates or failing to differentiate between CGST, SGST, and IGST. Accurate tax rate application is crucial for compliance.
    • How can I minimise mistakes while creating e invoices for interstate transactions?
      To minimise mistakes while creating e invoices for interstate transactions, double-check the place of supply and ensure the correct application of IGST instead of CGST and SGST.
    • What steps can I take to avoid common mistakes while creating e invoices?
      To avoid common mistakes when creating e invoices, implement a thorough review process, use automated invoicing software, and update your GSTIN and HSN code lists.
    • What are the common mistakes related to payment terms when creating an e invoice?
      Common mistakes related to payment terms while creating an e invoice include omitting payment due dates or specifying incorrect payment terms, which can lead to disputes and delayed payments.
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