Electronic invoicing, or e-invoicing, is a method of generating and exchanging invoices between businesses electronically, rather than using paper-based systems. E-invoicing has become mandatory for taxpayers whose aggregate turnover, based on PAN, is over Rs. 10 crore per financial year. It is applicable for all B2B taxable supply of goods or services or both and covers invoices, credit notes, and debit notes. However, it is not applicable for B2C supplies.
The e-invoicing system requires an invoice to have a QR code that contains an Invoice Reference Number (IRN), a unique 64-character hash/string. Invoices issued by the notified person in any other manner will not be considered valid. Additionally, the requirement for issuing invoices in duplicate/triplicate is no longer required for e-invoicing, and e-invoicing does not mean generating invoices in a soft copy format like PDF.
The e-invoicing process involves taxpayers continuing to create their GST invoices on their own accounting/billing/ERP systems. These invoices are then reported to the Invoice Registration Portal (IRP), where the IRP returns a signed e-invoice with a unique IRN and a QR code. The GST invoice is only considered valid with a valid IRN. Amendments to the invoice details reported to the IRP cannot be made on the IRP itself. Any changes can only be carried out on the GST portal while filing GSTR-1. However, these changes will be flagged to the proper officer for information.
E-invoicing has made simultaneous generation of an e-way bill possible, where required. The requirement for an e-way bill continues to be mandatory while transporting goods. Cancellation of an IRN is possible within 24 hours from the time of generation. However, if the connected e-way bill is active or verified by an officer during transit, the cancellation of the IRN will not be allowed.
Some sectors are exempted from e-invoicing, including SEZ units, insurance, banking (including NBFCs), goods transport agencies (transporting goods by road in goods carriage), passenger transport services, and multiplex cinema admissions.
In conclusion, e-invoicing has become mandatory for taxpayers whose aggregate turnover, based on PAN, is over Rs. 10 crore per financial year. E-invoicing covers all B2B taxable supply of goods or services or both and requires an IRN with a QR code. E-invoicing has made the simultaneous generation of an e-way bill possible, where required. Cancellation of an IRN is possible within 24 hours from the time of generation. Amendments to the invoice details reported to the IRP cannot be made on the IRP itself but can be carried out on the GST portal while filing GSTR-1.
You can search for Chartered Accountants (CAs) in Gurgaon who specialize in e-invoicing and GST compliance.It is important to choose a CA in Gurgaon who is knowledgeable, experienced, and reliable to ensure that your e-invoicing requirements are met accurately and efficiently.
