E-invoice under GST- How to generate E-invoice under GST System?

Last Updated On: Dec. 6, 2020, 11:25 p.m.



Electronic invoicing or E-Invoicing is a procedure in which taxpayers have to generate B2B invoices online through the GST network on the GST portal for future use. An ID number shall be issued for every invoice under the e-invoicing system by the IRP and is handled by GSTN.  The National Informatics Centre was the first to issue the Invoice Registration Portal. From the IRP, all the details of invoice shall be transferred to both the e-way bill portal and common GST portal at once. Hence, you don’t have to enter data manually to file GSTR-1 return and to generate E-Way Bill Part 1. All the details will be passed to the GST portal directly by the IRP. 


Implementation of E-Invoicing

With annual turnover exceeding Rs. 500 Cr, the taxpayers can generate e-invoices manually from January 7, 2020 using APIs. On the other side, taxpayers with turnover from Rs. 1 Cr. to Rs. 500 Cr. can generate e-invoices from February 1, 2020. From April 1, 2020, the e-invoices should be implemented. For taxpayers with over Rs. 500 Cr. as turnover, that limit has been extended to October 1, 2020. The aggregate turnover includes total turnover under one PAN in all GSTINs in India. 


How to Generate eInvoice under GST?

Businesses use different software platforms to generate invoices and these invoice details are entered manually in GSTR-1 return form. After filing the GSTR-1 form, the details of the invoice appear in GSTR-2A form in the ‘view-only’ format for the recipients only. On the other side, an e-way bill must be generated by the transporters or consignors. They can simply import the invoices in the form of JSON or Excel manually. 

As on October 1, 2020, the process remains unchanged for uploading and generating invoice details under the e-invoicing system. It can be done through API or importing to JSON or Excel, either through a GSP or directly. The data will reflect directly on the GSTR-1 form and e-way bill as well. 


Benefits of e-Invoicing for Businesses 

  • Bridges a gap and fixes data reconciliation to cut down on mismatch errors under GST. 
  • Real-time tracking is done by the supplier for the invoices prepared
  • One can read e-invoices on a particular program which can be accessed by other people. This way, it helps to reduce the risk of errors. 
  • One can access input tax credit quickly. 
  • Automation and back-integration of the process of filing tax returns. The invoice data would be reflected automatically in several returns, especially when you generate e-way bill Part A. 
  • Tax authorities don’t have to do surveys or audits as they can get all the details needed at the transaction level. 


E-Invoicing under GST Applicability 

The e-invoice draft has been made public and released in excel template by GSTN on August 20, 2019. The GST Council has approved the same with some changes on September 20 2019, at the 37th meeting by the GST Council. In association with ICAI, the GSTN has drafted the format in compliance with Indian tax laws and GST. The format follows several industry standards and international norms. An individual format caters to several businesses and industries and it looks complete. 

Any existing invoice or accounting application or software vendor like Marg ERP should comply with PEPPOL (Pan European Public Procurement Online) guidelines to generate invoices. Hence, taxpayers can generate an invoice as per the source. The PEPPOL has been referred to as the UBL version of XML by the GSTN. 

PEPPOL is the most common standard worldwide these days. The system is backed by several trading communities and business applications for the exchange of information in supply chains with a standard or common format. An individual data entry point is enabled in e-commerce for business. Later on, the flow of data is happening in various portals through IRP. 


Here are some of the important parts of e-invoicing by GSTN: 

Masters – It consists of inputs for specific fields given by GSTN, such as State Code, UQC, supply type, invoice type, etc. 

E–Invoice Schema – It has the description of each field, name of the technical field, sample values, whether it is recommended or not, as well as explanatory notes. 

E-invoice template – According to GST rules, this template allows readers to tally the terms they have used in other sheets. Optional fields have been marked yellow and mandatory are green. 


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