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E-Invoice under GST

Introduction

E-Invoice is a system where the B2B Invoices (Business to Business) are authenticated electronically by GSTN (Goods and Services Tax Network) for further processing to be done on GST Portal. It is basically a specially designed standardized format. E-Invoicing is which is also termed as “electronic invoicing”

Just like E-Way is generated in order to allow transportation of goods from one place to another. Similarly, Certain businesses require who fall under the eligibility criteria must generate E-Invoice. As decided in the 37th GST Council Meeting, the new system of e-invoice was implemented to cover maximum of large enterprises and later the middle scale business enterprises as well.

EAdvisors offers the best of e-invoicing solution for businesses. Contact Us to help you manage you business e-invoices.

Do you know why e-invoicing is needed?

The reason behind the introduction the of e-invoice system is simple as it ensures real-time reporting of invoices on the Government Portal. Along with it, it reduces the chances of manipulation for avoiding tax. E-Invoicing system has come up with various benefits. Due to this, manually entering data will not be needed anymore.

For some of them, e-invoice is mandatory. To know in which case e-invoice is mandatory? Continue reading.

For entities having a turnover of Rs. 500 Crore and above are required to mandatorily get E-Invoicing System. However, in the year 2021, the threshold limit was reduced to Rs. 100 Crore and later to Rs. 50 Crore, E-Invoicing is not for generating invoices on GST Portal but for submitting an already generated standard invoice on a common e-invoice portal. In a nutshell, it automates multi-purpose reporting with one-time input of e-invoice details.

On every invoice generated, an Identification number will be issued by the Invoice Registration Portal (IRP). From the E-Invoice Portal, all the information gets automatically transferred to the GST Portal

As per the latest Update by GST, published on 1st August 2022, “ The e-invoicing system for B2B transactions has now been extended to those with an annual aggregate  

Applicability of E-Invoice

PhaseCategoryApplicable Date
ITaxpayer having an aggregate turnover of Rs. 500 Crore01.10.2020
IITaxpayer having an aggregate turnover of Rs. 100 Crore01.10.2021
IIITaxpayer having an aggregate turnover of Rs. 50 Crore01.04.2021
IVTaxpayer having an aggregate turnover of Rs. 20 Crore01.04.2022
VTaxpayer having an aggregate turnover of Rs. 10 Crore01.04.2022

 Non-Applicability of E-Invoicing

Keeping aside the turnover aspect of the taxpayer as it is not to be considered in the below-mentioned categories of registered persons.  

  • An insurer or a banking company or a financial institution, including NBFC
  • Good Transport Agencies (GTA)
  • Registered person supplying passenger transportations services
  • Registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex services
  • SEZ (Social Economic Zone) Unit
  • A government department and local authority

*SEZ unit and government department and local authority are excluded via CBIC Notification No. 61/2020 – Central Tax and CBIC Notification No. 23/2021 – Central Tax

GST E-Invoice System Benefits on Business

  • It helps in reducing mismatch of errors
  • One Software that reads data from one software to another i.e. interoperability
  • Real-time tracking of invoices
  • Faster availability of Input Tax Credit (ITC)
  • Lesser possibilities of audits.

To look more into it, you can visit the government website from here:- https://einvoice1.gst.gov.in/
By clicking on the link, you will come to the E-Invoice Portal.

If looking for GST E-Invoice Consultant then, feel free to contact us. We will be there by your side at every step. Full guidance and support shall be provided.

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