E-Invoicing has been in a long talk since the introduction of GST in the year 2017. And in the past couple of years, CBIC has introduced the system of e-invoicing and has made it mandatory for taxpayers in phases. And as of now (i.e.., w.e.f 01st April 2022) e-invoicing is mandatory for all assessees having turnover more than 20 crores in any of the financial years since the GST was made effective in India. And now since you know whether you are required to make an E-Invoice or not we shall discuss what exactly an E-Invoice is and how it works.
What is an E-Invoice?
An E-invoice means that registered taxpayers are required to register their standard invoices on an electronic platform known as Invoice Registration Portal (IRP), managed by GSTN. Currently, there is only one IRP operational in India having the URL https://einvoice1.gst.gov.in/ .Under this electronic invoicing system, a unique identification number is issued against every invoice by the IRP known as Invoice Reference Number (IRN) along with a digitally signed Invoice and a QR Code.
Who are mandatorily required to generate E-Invoice?
Taxpayers having a turnover of more than Rs.20 crores in any of the financial years after 2017-18 are required to generate E-Invoices from 1st April 2022 mandatorily.
Can a taxpayer generate E-Invoice voluntarily?
No. As of now, e-invoicing can be done only by the notified class of persons.
Do I have to register myself on the portal to create this E-Invoice?
If you are already using the E-Way Bill system in your process then you are not required to register yourself again on IRP. You may use the credentials of the e-Way bill to login into the IRP. And others who have never generated an E-Way bill are required to register themselves on the E-Invoicing portal.
Can I amend the generated Invoice?
Once an Invoice Reference Number (IRN) is generated on Invoice Registration Portal (IRP), the amendment is not possible. Though you may amend the changes in the invoice while reporting your sales through the filing of GSTR-1. However, such changes will be flagged to the proper officer.
In how much time should I generate the IRN for an invoice?
IRN should be generated before issuing the invoice to the purchaser or before the movement of goods whichever happens earlier.
Can I cancel the IRN generated against the Invoice? If Yes, then what is the time limit to do so?
Yes. An e-invoice can be cancelled. But this should be done within 24 hours of generating the invoice. Also, note that such invoice numbers cannot be re-used even after cancelling the IRN. And also ensure that if you have issued an E-way bill on such cancelled Invoice then you have to first cancel that E-way bill before cancelling the E-invoice.
After generating E-Invoice on the portal can I send my standard invoice to the customer?
Yes, you can but such an invoice must contain the QR code generated by the IRP on its face. Also, such QR codes must be clear enough to be scannable. Though having IRN No., Acknowledgment No. & Date given by IRP on the invoice is optional.
What if the service or goods supplied by me is chargeable on a reverse charge basis?
Even though your supply falls under the reverse charge you need to still generate the e-invoice.
The above concepts are basic concepts introduced in e-invoicing and are subject to change when some law gets updated. For any query related to e-invoicing and for any assistance in the field of accounts, law and finance you may reach out to us in the below-given IDs.
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Source Info: https://www.incometax.gov.in./