Challenges and Concerns Related To E-Invoicing System


Date: 29 Dec 2022

Issues and Concerns surrounding the E-Invoicing System


For those whose annual revenue exceeds Rs. 500 crores, a new GST reform known as the E-Invoicing system was introduced in October 2020. Only those with a turnover of more than Rs. 20 Crores are affected. The new system leads to questions and concerns. Here, we'll discuss the problems and concerns related to the e-invoicing system.


Critical Challenges And Concerns Regarding E-Invoicing 


Below are some of the problems that taxpayers will face when the new e-invoicing rules go into effect.


  • Integration To ERP System -  


To ensure a smooth transfer of invoice data to the IRP and e-invoice back to the ERP system, businesses must integrate their ERP system with IRP/GSP/ASP. For this purpose, GSTIN has made APIs accessible. As most of the ERP used by various enterprises can be customised, It provides leeway for making changes as per standard e-invoice schema.


The QR code must be printed in the current invoice format. If integrating the ERP system is not required because the IRP also offers a bulk e-invoice generating tool. ERP's lack of integration, however, may be a problem for businesses that generate a lot of invoices.


  • Sorting Of B2B and B2C Invoices - 


Only B2B invoices are subjected to e-invoicing. B2C invoices does not need e-invoices. While B2C invoices just need e-way bills (wherever an e-way bill is applicable), B2B invoices need to create both e-way bills and e-invoices. The transporter ID must be mentioned when creating an e-way bill is required. As a result, sorting invoices will be necessary and, to some extent, require automation.  Or else it would take a considerable amount of time and effort.


  • Cancellation and Amendment Of E-Invoices - 


An e-invoice cannot be cancelled in part. Even minor adjustments must be completely cancelled. E-invoice cancellation is permitted on the IRP within 24 hours. The GST site must be used to cancel an order after 24 hours have passed on the IRP. It should be noted that the previous invoice number cannot be used to raise a new invoice. In addition to rectifying any errors, a taxpayer must change the invoice number and submit a new invoice on the IRP.


  • Alternate Arrangement For Storage Of Data -


Data on IRP will only be retained for 24 hours.Therefore, as the IRP does not currently provide data preservation, another method of archiving needs to be developed. Users have access to the e-invoice data that is supplied to the GST portal through the GSTR-1 return.


  • Reconciliation Of E-Invoice Data On GSTR-1 And The -Way Bill Portals


A taxpayer must reconcile the data from his e-invoice and e-waybill with the data from his GSTR-1 return. Even if the data from the e-invoices is transferred to the data from the e-way bill and his GST-1 return. The government still advises that the taxpayer perform a reconciliation of the data across these three portals, even if the data from e-invoices is transferred to the e-way bill and GST portals, to correct any errors that could result in taxpayers being fined. It is possible to perform reconciliation with the use of tools or utilities.


  • Non Applicability Of E-Invoicing To B2C Transaction


Since there is no ITC involved, B2C invoices experience the most fraud. E-invoicing is not currently applied to B2C transactions. But the legislation mandates specific organisations (to which e-invoicing is applicable. Dynamic QR codes must be generated and printed for B2C invoices for businesses with annual revenue of less than Rs. 500 Core as of December 15, 2020.


The penalty for failing to comply with the dynamic QR code rules between December 1, 2020 and March 31, 2021 will be waived if the eligible registered person did so starting on April 1, 2021, according to a CBIC notification. This requirement has come into force from 1st December 2020. 


  • Workflow Changes To Process Other Types Of Documents


E-invoicing only applies to B2B bills, as was previously stated. A separate process must be in place for delivery challans, bills of supplies, job work, and other related transactions. It takes a lot of time and effort to design multiple workflows for various sorts of transactions.




E-Invoicing is a relatively new concept under GST, implemented in India after multiple meetings, conferences, discussions, and feedback sessions. The new e-invoicing system's true difficulties won't become evident until the taxpayer begins using it regularly. However, we can guarantee that if you choose busy e-invoicing software, shifting to an e-invoicing system will be simple and painless. Considering the difficulties faced by taxpayers, we created and developed this e-invoicing programme.