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 37^th 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 1^st August 2022, “ The e-invoicing system for B2B transactions has now been extended to those with an annual aggregate  

Applicability of E-Invoice

 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.