Table of Contents
What is meant by e-invoice?
An electronic invoice (e-invoice) is an invoice that is issued, transmitted, received, processed and stored electronically using specific document formats.
Who is eligible for E-invoice in GST?
The e-invoicing system shall apply to the GST registered persons whose aggregate turnover in the financial year exceeds Rs. 50 crore. However, exceptions include Special Economic Zones (SEZ) units, insurance, banking, financial institutions, NBFCs, GTA, passenger transportation service, and sale of movie tickets.
Is e-invoice mandatory for GST?
The government-mandated e-invoicing to avoid GST tax evasion. 100 crore had to issue e-invoices from 1st January 2021. In the third phase, companies with turnover higher than Rs. 50 crore must issue e-invoices from 1st April 2021.
What is difference between invoice and e-invoice?
Digital invoice vs electronic invoice A digital invoice is an invoice that can be viewed and processed digitally. An e-invoice is always a digital file format, just like a PDF or Word file. A digital invoice is not necessarily an e-invoice.
Why e-invoice is required?
It will also reduce input tax credit verification issues. Better management and automation of the tax-filing process. Reduction in the number of frauds as the tax authorities will also have access to data in real-time. Elimination of fake GST invoices getting generated.
Does GST e-invoicing generate invoices?
With the GST e-invoicing mandate in India overlooking a government-regulated step towards digitization, there are questions pertaining to the implementation, legality, and guidelines that dictate how the e-invoicing process works. For instance, it’s a common misconception that e-invoicing under GST ‘generates’ invoices for the supplier.
What is e-invoicing and how does it work?
‘e-Invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number will be issued against every invoice by the Invoice Registration Portal (IRP), managed by the GST Network ( GSTN ).
What is the e-invoicing standard for India?
Since there was no standard for e-invoicing in India, the GSTN in consultation with trade bodies and ICAI finalized the e-invoicing standard. The very purpose behind introducing such a standard is to ensure complete interoperability of e-invoices across the entire GST ecosystem.
What is the invoice reference number (IRN) under GST?
Therefore, once the invoices are generated by the suppliers, they will report these invoices to the Invoice Registration Portal (IRP) of the GST. IRP will in return issue an Invoice Reference Number (IRN), digitally sign the invoice and issue a QR code containing details of the e-invoice.