e - Invoice

under GST
What is e-invoicing?

 ‘E-invoicing’ or ‘electronic invoicing’ is a system where in the tax payer will upload his
invoice details and register his supply transaction on the Government Invoice Registration
Portal (IRP)and get the Invoice Reference Number (IRN) generated by the IRP system. That
is, the tax payer will first prepare and generate his invoice using his ERP/accounting system
or manual system and then upload these invoice details to IRP and get the unique reference
number, known as IRN. It is clarified again that the e-invoice means NOT preparation
or generation of tax payer’s invoice on government portal. It is only intimating the
government portal that invoice has been issued to the buyer, by registering that invoice
on the government portal.
Kind of Invoices to be reported

While the word invoice is used in the name of e-invoice, it covers other documents that will be
required to be reported to e-invoice system by the creator of the document:
 Business to Business Invoice
 Business to Government Invoices
 Export Invoices
 Reverse Charged Invoices (Outward supply)
 Credit Notes
 Debit Notes
It may be noted that presently the Business to Consumer (B2C) invoices are not allowed for e-
invoice/ IRN generation.
From where Invoice is to be generated?

 Businesses will continue to generate e-invoices on their internal systems -whether ERP or
their accounting / billing systems or any other application. Business to Government
Invoices
 The e-invoicing mechanism only specifies the invoice schema and standard so as to be
inter-operable amongst all accounting/billing software and all businesses.
 The common portal for generation of e-invoice is https://einvoice1.gst.gov.in
What is Invoice Reference Number (IRN)?

 The Invoice Reference Number (IRN) is a unique number (also known as hash) generated
by the e-invoice system using a hash generation algorithm. For every document such as an
invoice or debit or credit note to be submitted on the e-invoice system, a unique 64
characters Invoice Reference Number (IRN) shall be generated which is based on the
computation of hash of GSTIN of supplier of document (invoice or credit note etc.), Year
and Document type and Document number like invoice number. This shall be unique to
each invoice and hence be the unique identity for each invoice for the entire financial year
in the entire GST System for a taxpayer.
How to generate?

 To generate IRN user have to login e-invoice system and select ‘generate new’ option
under e-invoice. User has to furnish transaction details, Bill to-Ship to details and Item
details according to the document in hand and click generate. E-invoice system will
generate 64 characters length IRN with a digitally signed e-invoice and QR code.
Different utilities for generation of json file:

 Format A : For B2B, SEZ, Exports and Deemed Exports of e-Invoice details in one sheet
 Format B : For B2B, SEZ, Exports and Deemed Exports of e-invoice details in two sheets
 Format C : For B2B, SEZ, Exports , Deemed Exports alongwith Payment and Reference
details of e-invoice in multiple sheets
 Format D : For B2B, SEZ, Exports , Deemed Exports alongwith Payment and Reference
details of e-invoice in one sheet
 E-Invoice Cancel by IRN - JSON Preparation
 E-Waybill Generation by IRN - JSON Preparation
How many transaction type?
 There are four types of transactions:
 • Regular: This is a regular or normal transaction, where Billing is happening between two
parties - consignor and consignee. That is, the invoicing and the movement of goods from
consignor to consignee have taken place directly.
 • Bill To – Ship To: In this type of transaction, three parties are involved. Billing has taken
places between consignor and consignee, but the goods are moved from the consignor to
the third party as per the request of the consignee.
 • Bill From – Dispatch From: In this type of transaction also, three parties are involved.
Billing has taken place between consignor and consignee, but the goods were moved by
the consignor from the third party to the consignee.
 • Combination of both: This is the combination of above two transactions and involves
four parties. Billing has taken place between consignor and consignee, but the goods were
moved by the consignor from the third party to the fourth party, as per the consignee’s
request.
Other Details:
 Taxpayer enters “Product Name’ “Description”, “HSN Code”, “Unit” and “Tax Rates”
details are auto populated. These details will come from Products Masters’ entry.
 Tax payer needs to enter “Quantity” and “Value/Taxable Value (Rs)” as written in the
Document declared in the Document declared above.
 Next, System will auto-populate the standard rate of tax (%) in the dropdown while
entering the HSN code. Tax payer has to select the applicable tax rate slab (in %) from the
dropdown and based on this, the system calculates and auto-populates the CGST, SGST,
IGST & CESS amount etc.
 Tax Payer can enter any additional charges or any discount applicable on the Invoice in
“CESS NonAdvol” & “Other Amount (+/-) so that “Total invoice value” can match to the
Invoice value. The system calculates and displays the Total Inv. Value.
Other Details:
 Tax payer can add multiple products by clicking on + button.
 It may be noted that the system will show the CGST and SGST tax rate for intra-state
movement and IGST tax rate for inter-state movement.
 Once a request for E-invoice is submitted, the system validates the entered mandatory
values and pops up appropriate message if there is any error. Otherwise the system will
generate a 64 character length Invoice reference number and will add digital signature on
the Invoice and to QR code.
Cancellation of IRN
 The IRN once generated cannot be modified or deleted. However, if IRN is generated with
wrong information, it can be cancelled and generated afresh. The cancellation is required
to be done within twenty four hours from the time of generation.

 If there is a mistake, incorrect or wrong entry in the e-invoice, then it cannot be edited or
corrected. Only option is cancellation of e-invoice and generation of a new one with
correct details.

 E-Invoice can’t be partially cancelled. It has to be fully cancelled. Cancellation has to be

 The e-invoice mechanism enables invoices to be cancelled. This will have to be triggered
through the IRP, if done within 24 hours. After 24hours, the same will need to be done on
the GST System.
Amendments
 Amendments to the e-invoice will be allowed on GST portal as per provisions of GST law.
All amendments to the e-invoice will be done on GST portal only.
 Printing of Invoice / IRN / QR Code
 The signature (DSC) of supplier is not mandatory while reporting e -invoice to Invoice Registration Portal (IRP).
 Printing of IRN is optional. IRN is anyway embedded in the QR Code to be printed on invoice.
 The QR code is part of signed JSON, returned by the IRP. It is a string (not image), which the ERP/accounting/billing software
shall read and convert into QR Code image for placing on the invoice copy.
 The QR code (containing, inter alia, the IRN) which comes as part of signed JSON from IRP, shall be extracted and printed on
the invoice.This is one of the mandatory particulars of invoice under Rule 46 of CGST Rules.
 However, printing of QR code on separate paper is not allowed.
 While the printed QR code shall be clear enough to be readable by a QR Code reader, the size and its placing on invoice is
upto the preference of the businesses.
  There is no mandate to print Acknowledgement No.” and “Date” particulars on invoice. However, the seller can print the
same voluntarily.
 Where e-invoicing is applicable, there is no need of issuing invoice copies in triplicate/duplicate. This is clearly specified in
Rule 48(6).
 The supplier may exchange the PDF of the JSON received from IRP, (which includes signed QR code) as the best
authenticated version of the e-invoice for business transactions.
 Copy of e-invoice in not mandatory to carry during transportation of goods. As per Rule 138A(2) of CGST Rules, where e-
invoicing is applicable, “the Quick Reference (QR) code having an embedded Invoice Reference Number (IRN) in it, may be
produced electronically, for verification by the proper officer, in lieu of the physical copy of such tax invoice.”
Important Points
 Trial portal is active to generate IRN for live data
https://einvoice1-trial.nic.in/
 Production portal shall be effective from 15th December 2020
 Mandatory w.e.f. 1st January 2021 for assessee whose turnover exceeded 100 Crore in any
of F.Y. 2017-18, 2018-19 or 2019-20.
Thank you !
Shah & Gandhi,
Chartered Accountants
910, Sanket Heights, Nr. Akshar Chowk, Sunpharma Road Corner, Atladra, Vadodara
- 390 020
(O) : 0265-2981122   (M) - +91-9904075457   E-Mail - [email protected]