What Is E-Invoicing Under GST?
The concept of e-invoicing under 39ththe GST Council meeting. Further, the reason behind the introduction of GST e-invoicing was to ensure the inter-operability of e-invoicing around the entire GST system. the name suggests, is an electronic challan that consists of electronic uploading of all B2B challans. Thereafter, the authentication of these invoices takes place on the GST portal. Consequently, upon authentication, there is a generation of a unique Invoice Reference Number (IRN) for each invoice. In addition to this IRN, each invoice is digitally signed and linked with a QR code. This process as a whole is e-invoicing under GST.
Benefits Of E-Invoicing
e-invoicing is e-invoicing. Accordingly, the benefits of e-invoicing under GST are as follows:
- Saving time by uploading invoices only once. E-invoicing under GST reduces reporting of the same invoice information in multiple forms multiple times. This is because e-invoicing only requires a single upload, and everything gets pre-populated as needed.
- Auto Population of Details in GSTR-1: There is an Auto Population of B2B Details in GSTR-1 on Uploading E-Invoices
- Real-Time Tracking of E-Invoices under GST Ensures Real Time Tracking of Invoices which will enable the buyers to seek input tax credit. Allows for fast availability.
- Reduction in Frauds: E-invoicing ensures a reduction in fraud as well as a reduction in the issuance of fake invoices.
- Reconciliation of data: With the help of e-invoice, a buyer can accept or reject the information under the new return instantly by reconciling it with his purchase register.
Is e-invoicing mandatory under GST?
Under the GST system, e-invoicing is mandatory as per the turnover of the GST-registered person. Accordingly, the applicability of issuance of GST e-invoices compulsorily for various turnovers in a phased manner has come into force. as follows
| PhaseTurnover | VerLimitis | Phase of Application From Date of ApplicationI |
| ₹ | 500 Crore | 1st October 2020 to |
| II | ₹ 100 Crore | 1st Jan 2021 |
| III | ₹ 50 Crore | 1st April 2021 |
| IV | ₹ 20 Crore | 1st April 2022 |
| V | ₹ 10 crore | October 1, 2022. |
Accordingly, from the above table, we can infer that e-invoicing for B2B transactions under GST started with a very high threshold of turnover of Rs. 500 crores and above. And, now in the latest phase, this business limit has been reduced to Rs. 20 crore turnover in a financial year.
Who does not have to collect GST e-Challan?
The following persons are exempted from the issuance of e-invoices even if their turnover exceeds the limit:
- Special Economic Zones Units (not SEZ Developers) Insurers Banking Companies or Financial Institutions including NBFCs.
- Supply of passenger transport service.
- GTA supplies services in relation to the transport of goods by road in freight traffic.
- A person supplying services by way of entry into an exhibition of cinematograph films in multiplex screens to
whom GST e-invoice has to be uploaded?
As per the concept of GST e-invoicing, the seller has to upload the invoice in the IRP system. Thereafter, he has to capture the IRN and QR code in the physical copy of the invoice to the recipient.
Types Of Documents Covered Under GST E-Invoice
GST under Invoice Covered Documents of Types
The types of documents covered under the GST e-invoice are as follows
- Invoice by the supplier
- Credit note by the supplier
- Debit note by the supplier
- Any other documents
Can Make Changes In GST E-Invoice
You cannot make changes to the GST e-invoice. If there is any error or error in the e-challan, the only option available is to cancel the e-challan and upload a new e-challan (with a new number) and accordingly, generate a new IRN.
Can e-challan be partially/completely canceled?
The e-invoice cannot be partially canceled. If there is any need to cancel, it should be done in its entirety. Further, in case of cancellation of e-invoice, the same shall be reported to the IRN within 24 hours of cancellation. After 24 hours, you will not be able to use IRN for cancellation of e-invoice and manual cancellation will be required on the GST portal. Also, the cancellation can happen only before the filing of the return.
