Additionally, templates can be used to provide a standardised design for the invoice, helping to ensure consistency across all invoices generated by the business. These elements work together to streamline the invoicing process and improve business efficiency. The designated taxpayers ensure that the accounting/billing software used to create invoices complies with the established specifications. The information is then posted to the invoice registration portal (IRP) to receive the invoice reference number (IRN) for each document. The produced invoice will be known as an “e-invoice.”
The e-invoice structure includes both required and optional fields. All required fields must be present for an e-invoice to comply with e-invoice standards. Depending on the business’s demands, optional fields may be included. An e-invoice can have a maximum of 1000 line items.
It is increased to 5000 line items in rare circumstances. To register an e-invoice on IRP, all required fields must be completed. It is possible to report NIL for a necessary field with no value. The following is a list of the sections that must be included:
An overview of the mandatory annexures are as follows:
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Following the IRP’s data confirmation, the seller will receive JSON, a distinct IRN, a digitally signed e-invoice, and a QR code. The QR code includes basic invoice information. The supplier’s ERP must record the invoice’s serial number for a financial year, distinct from a GSTIN.
The IRP will construct the IRN using the supplier’s or document originator’s GSTIN, fiscal year, and the document’s specific serial number. The supplier must retain the IRN assigned to each invoice. The IRN should be kept in the ERP because an invoice without it is not a valid legal document.
The e-invoice schema contains the following columns:
Defined Columns | Meaning |
---|---|
Technical Field Name | It refers to the technical name of the field |
Cardinality | It indicates whether the item is mandatory or not, and also it indicates the recurrence of the item, i.e. whether the item can be repeated or not. |
Small Description of The Field | This is the field name which will be displayed in the e-invoice. |
Is It Mandatory on the Invoice | Whether the field is optional or mandatory |
Technical Field Specification | This specifies the limitation of the string, i.e. the maximum length of the field, date format, and decimal places |
Sample Values of the Field | Example for the user to get familiar |
Explanatory Notes of Field | A detailed explanation about the small description of the file, i.e. what it means and what are the details to be mentioned? |
The following 30 fields are mandatory in an e-invoice:
The GST portal initially made two different e-invoice template options available. One template had only mandatory fields, and the other had optional ones. Both were Excel templates. Only the required fields were included in the template.
A GST invoice format is required when you are selling goods or services and need to charge GST (Goods and Services Tax). It includes key details such as the name, address, and GSTIN of both the buyer and the seller, a unique invoice number, the date of the invoice, a description of goods or services, the amount charged, and the applicable GST rate. The invoice should also show the total amount including GST. It ensures transparency in tax collection and helps businesses claim tax credits.
GST invoice formats vary based on the nature of the transaction and the type of goods or services being provided. Common types include:
Each format ensures compliance with GST laws and simplifies tax calculations.
A GST invoice format for goods includes essential details such as the seller’s and buyer’s name, GSTIN, invoice number, and date. It specifies the goods being sold, including quantity, price, and applicable GST rates. The invoice should also show the total amount, including GST. The format ensures that GST is properly applied and helps businesses keep accurate records for input tax credits and tax filing.
A GST invoice format for services is similar to the one for goods, but it focuses on the services provided instead of physical products. It includes the service description, the rate of GST applicable, and the total amount charged. The format also shows the GSTIN of both the service provider and the recipient, along with the total amount payable, including GST. It ensures that service providers comply with GST laws and can claim tax credits.
An export GST invoice format is used when goods are sold for export. It specifies that the transaction is export-related and shows a zero-rated GST. This format includes the seller’s and buyer’s GSTIN, along with a description of the goods, the value of goods, and any other required details. Export invoices are crucial for businesses to claim exemptions from GST under export rules.
A reverse charge invoice format is used when the buyer, not the seller, is responsible for paying the GST. This typically applies to specific goods or services as per GST regulations. The invoice includes the buyer’s details and specifies the reverse charge mechanism, stating that GST will be paid by the buyer. It ensures compliance with GST rules related to reverse charge and helps in maintaining accurate records for tax purposes.
There are various invoice formats based on the transaction type. Some of the most common types include:
An invoice format in Excel allows businesses to quickly create and manage invoices. It typically includes fields for the seller’s and buyer’s details, the invoice number, date, description of goods or services, quantity, price, and GST. Excel makes it easy to update, calculate totals, and customize the format according to business needs. Using Excel helps in keeping a digital record of all invoices, making it easier to track payments and maintain accounts.
A tax invoice format is used when businesses charge tax on the goods or services provided. It includes the name and GSTIN of the supplier and recipient, invoice number, date, description of goods or services, taxable value, and GST amount. The tax rate (CGST, SGST, or IGST) is specified depending on whether the transaction is intra-state or inter-state. A tax invoice helps businesses comply with tax regulations and provides documentation for tax credits.
Adopting the E-Invoice format, JSON file, schema, and template can bring significant benefits for businesses, including improved efficiency, accuracy, and compliance with tax regulations. However, ensuring that the implementation process is smooth and that all stakeholders are trained and educated to use the new system effectively is essential. Additionally, regular updates and improvements to the E-Invoice format can help businesses stay up-to-date with the latest regulatory requirements and technological advancements.