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Point to Remember

Point to Remember

 

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  • Objective: The primary aim of e-invoicing is to ensure interoperability across the entire GST ecosystem. An e-invoice generated by one software should be readable by any other software, facilitating seamless integration and data exchange.

  • Reporting Timeframe: Businesses are required to report e-invoices to the Invoice Registration Portal (IRP) within 30 days from the date of invoice generation. For example, if an invoice is dated April 1, 2025, it must be reported by April 30, 2025. Failure to comply within this timeframe will result in the IRP rejecting the invoice upload.

  • Eligible for e-invoice: From 01.08.2023, E-Invoice is mandatory for registered person, whose aggregate turnover (on PAN Level) in a financial year exceeds one hundred crore rupees(>5 crores)

  • Document Types: E-invoicing applies to various documents, including invoices, debit notes, and credit notes. The system facilitates the auto-matching of input tax credit with output tax, enhancing accuracy and compliance.

  • Business Integration: E-invoicing aims to integrate invoice reporting into regular business processes, eliminating the need for compiling invoices at the end of a return period. Taxpayers can continue using their existing ERP systems to generate invoices, ensuring minimal disruption.

  • Fraud Reduction: By standardizing invoicing and enabling real-time reporting, e-invoicing helps curb fraudulent activities and reduces the incidence of tax evasion.

  • IRP Functions: The Invoice Registration Portal (IRP) assigns a unique Invoice Reference Number (IRN) to each e-invoice, digitally signs it, and generates a QR code containing essential invoice details. The IRP then returns the signed e-invoice and QR code to the supplier and shares it with the recipient via the email provided in the e-invoice.

  • Data Availability: E-invoice data is available on the IRP for 24 hours. After this period, the data is transmitted to the supplier's GSTR-1, the buyer's GSTR-2A, and Part A of the e-way bill (for goods).

  • Export Invoices: The e-invoice schema accommodates export invoices, facilitating compliance for businesses engaged in international trade.

  • Amendments: Amendments to e-invoices can only be made on the GST portal after 24 hours of uploading the document to the IRP.

  • Reverse Charge Mechanism (RCM): Invoices subject to RCM are also required to be generated through the e-invoicing system.

  • IRN Structure: The Invoice Reference Number (IRN) is a unique identifier assigned by the IRP.

  • Item Limit: A limit of 1,000 items per e-invoice has been set by the GSTN. For invoices exceeding this limit, it is advisable to:

    • Consolidate line items based on HSN codes to reduce the number of entries.

    • Split the document into multiple invoices, each within the 1,000-item limit.

  • IRN Generation: The IRN can be generated by the supplier or an e-commerce operator, as applicable.

  • Invoice Cancellation: E-invoices can be canceled within 24 hours of generation by reporting to the IRP. After 24 hours, cancellation must be done manually on the GST portal before filing returns. Partial cancellations are not permitted; the entire invoice must be canceled. Once canceled, the same invoice number cannot be reused. Additionally, if an e-way bill is associated with the IRN intended for cancellation, the IRN cannot be canceled.

  • Emailing of E-Invoices: The IRP does not email e-invoices to recipients. However, it returns the signed JSON and QR code to the supplier, who can then share it with the recipient.

  • Output Formats: The IRP returns the signed JSON; it does not generate PDFs. Suppliers can create PDF versions of the e-invoice using the signed QR code provided by the IRP.

  • Input Service Distributor (ISD) Documents: ISD invoices and credit notes require IRN generation as per legal provisions.

  • Documents Exempt from IRN: Documents without a tax component, such as bills of supply and delivery challans, are not required to obtain an IRN.

  • Amendment to any invoice can be made on GST portal only post 24 hours of uploading document to IRP.