BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
E-invoicing streamlines the invoicing process, reducing errors and paperwork. It ensures real-time tracking of invoices, faster payment processing, and seamless integration with GST returns. Let’s discuss the step-wise process for the same.
Let us understand the key prerequisites for generating e-invoices and Invoice Reference Numbers (IRNs) under the GST framework.
| Prerequisites | For e-invoice Generation | For IRN Generation |
|---|---|---|
| GST Registration | Must be GST-registered and have access to the GST portal, e-invoice portal, or e-way bill portal. | Must be a GST-registered taxpayer with an active login on the GST portal, e-invoice portal, or e-way bill portal. |
| Valid Documents | A valid invoice, debit note, or credit note must be available for reporting. | Invoice, debit note, or credit note details must be ready for submission. |
| Bulk Generation | Requires a valid JSON file based on the e-invoice schema or ERP system integration with appropriate APIs. | The offline IRN generator tool or API integration requires creating a user ID and setting a password on the e-invoice system. Use either the offline IRN generator tool for bulk generation or integrate ERP systems via API for automatic generation. |
Step 1: Ensure Eligibility for e-Invoicing
To generate e-invoices, the taxpayer must meet specific eligibility criteria. They must be GST-registered, and their accounting or billing software should comply with the e-invoice schema. It’s essential to ensure that the software can generate a JSON file in the prescribed format.
Step 2: Register on the GST Portal
The taxpayer needs an active GST registration and login credentials for the GST portal, the e-invoice portal, or the e-way bill portal. For bulk e-invoice generation or API integration, additional registration for API access may be required.
Step 3: Choose Compatible Invoicing Software
Taxpayers can use their preferred accounting or invoicing software in India as long as it supports the prescribed e-invoice format. Options include –
Step 4: Generate an e-invoice with Correct Details
Invoices should include mandatory details, such as –
These details ensure proper validation by the Invoice Registration Portal (IRP).
Step 5: Upload e-Invoice to the GST Portal
Once the invoice is prepared, upload the JSON file to the IRP. This can be done manually via offline tools or through API integration. For bulk uploads, taxpayers can use tools available on the portal under the Help section.
Step 6: Receive IRN from the GST Portal
The IRP validates the uploaded data, checks for duplication, and generates a unique Invoice Reference Number (IRN) using a hash-generation algorithm. The portal automatically generates one if the taxpayer doesn’t pre-generate an IRN.
Step 7: Download the e-invoice PDF with IRN
After validation, the IRP digitally signs the invoice and attaches a QR code containing key details, including –
Taxpayers can download the signed JSON file and convert it into a readable PDF.
Step 8: Include IRN on Subsequent Documents
The IRN and QR code must be integrated into all subsequent documents and shared with the buyer. The system also transmits this data to the GST and e-way bill portals for auto-population, streamlining compliance for GST filings.
Selecting a reliable and compliant invoicing solution simplifies this process and ensures smooth adherence to e-invoicing regulations.
e-Invoicing eliminates the need for repetitive reporting by enabling a single upload of invoice details. This automatically populates multiple forms, including GSTR-1 returns and Part A of the e-Way Bill, reducing administrative burdens.
Since invoice data is transmitted directly to the GST system, input tax credit claims and output tax reporting errors are minimised. Buyers can easily reconcile invoices with their purchase registers, improving accuracy and reducing disputes.
With seamless integration between the supplier’s and buyer’s records, input tax credits are matched automatically. This reduces verification delays and ensures buyers’ timely acceptance or rejection of invoices.
The system ensures a complete audit trail of B2B transactions, making it difficult to generate fake invoices. System-level invoice matching helps prevent fraudulent claims and boosts transparency.
Key invoice details auto-populate Part A of the e-Way Bill, requiring only transporter details to complete the process. This speeds up logistics workflows and reduces manual intervention.
Buyers automatically receive invoice data uploaded to the IRP, enabling quicker reconciliation and better communication between trading partners. This reduces delays and fosters trust in business transactions.
Automating invoice reporting and validation reduces manual effort and the need for repeated data entry. This saves time, lowers operational costs, and enhances overall business efficiency.
The system enables tax authorities to monitor transactions in real-time, improving the accuracy of tax collections and reducing compliance risks. It also simplifies audit processes, benefitting both businesses and regulators.
– Duplicate Invoice Reference Number: This occurs when the same invoice is uploaded multiple times. Avoid simultaneous requests, wait for the IRN, and resend only if it has not been received.
– Incorrect Tax Allocation for Intra-State Transactions: IGST is applied instead of CGST and SGST. Verify State codes and use CGST/SGST when they match; flag intra-state transactions for IGST when applicable.
– Invalid HSN Code: Validation errors arise from incorrect HSN codes. Cross-check on the e-invoice portal or confirm with the help desk.
– Mismatch in Taxable Values: This happens when the total taxable value doesn’t match the line item sums. Ensure total taxable value equals the sum of all line items.
BUSY automates e-invoice and IRN generation, reducing errors and ensuring GST compliance. It enables real-time GST portal syncing, which enables quick error correction, while automated reconciliation streamlines compliance. This saves time, boosts accuracy, and simplifies the entire business process.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.