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What to Know About GST eInvoice – Benefits, eInvoice Format, and More

Indian central government implemented GST Act in 2017 to reduce the burden on taxpayers and enhance system transparency. With this in mind, TaxPro is encouraging businesses to adopt an eInvoicing system to generate and authenticate documents on GST Invoice Registration Portal (IRP).

Traditionally invoices involved labor-intensive and error-prone manual procedures. Managing invoices electronically allows organizations to streamline this universal business approach.

eInvoicing is an exchange of invoice documents between a supplier and buyer in a standard, structured format. The benefits include increased efficiency, fewer errors, and shorter payment cycles. Let’s understand more about it.

What is GST eInvoice?

eInvoice is an electronic system to generate B2B invoices and other documents to upload and authenticate on IRP. After successful verification of the invoice, a unique Invoice Reference Number (IRN) is generated by the IRP portal. Further, along with QR and IRN codes, a digitally signed invoice would be available for the supplier.

Why was the concept of eInvoicing Introduced?

In the 37th meeting of the GST Council, they introduced the eInvoice concept for GST taxpayers. Initially, it applied to taxpayers with an annual turnover of Rs. 500 crores, but from October 2022, it shall apply to those with a turnover of more than Rs. 10 crores. Companies must register with the eInvoicing system and generate eInvoices for all business transactions.

Furthermore, this system will address the significant issue of tax evasion and fraud due to fake invoices. Invoices must be first validated by the GST portal before being sent to the supplier.

How eInvoice can Curb Tax Evasion?

Since all eInvoices need to be generated on the IRP portal, it provides a real-time update to tax authorities. It eliminates the possibility of fake invoices and inaccurate input tax credits as chances of invoice manipulation are removed.

Further, all this information is given in the eWay bill too, creating a closed loop. Through all these benefits, eInvoice removes the likelihood of tax leakages in end-to-end business transactions.

Understand eInvoice format or Schema

To facilitate ease of upload and eInvoice generation, standard guidelines are introduced to structure the eInvoice format. It is notified in GST rules as Form GST INV-1. It serves as a standard template for the electronic reporting of invoice details. The invoice details in the prescribed structure need to be reported to IRP in JSON format.

eInvoice format is categorized into 8 major headings, in which details are required to be mentioned. It includes:

• Basic details
• Invoice period
• Preceding document/contact reference
• Receipt references
• Supplier information
• Buyer information
• Payee information
• Delivery information
• Ship-to details
• Dispatch from details
• Invoice item details
• Document total
• Extra information like port code, batch details, etc.

As per the eInvoice schema, certain details are necessary to mention while sending an invoice to IRP. Depending on the nature of the business and transactions, some details can be optional as well.

Mandatory Details of eInvoice

• Code for supply type
• Code for document type
• Document number
• Document date
• Supplier legal name
• GSTIN of supplier
• Supplier address
• Supplier place
• Buyer’s name and GSTIN
• Place of supply
• List of items – goods and services being invoiced
• Document total details
• Ship to details if possible

Get Started with TaxPro GSP

TaxPro is an eInvoice service provider working to ease the complex Indian taxation ecosystem and make eInvoicing easier to integrate than ever. With TaxPro GSP, a value-added API and free Java library or .Net DLLs, it becomes convenient to generate, authenticate and cancel IRN within your ERP system itself.

It eliminates the role of JSON files and multiple visits to IRP, as you can generate and perform all invoice operations within your ERP, billing, or accounting software. It can ease the auto-reporting of invoices into GST returns, reduce disputes among transacting parties, and improve overall business efficiency.

Schedule a demonstration to see TaxPro GSP in action.

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