As we are moving forward under GST regime we are seeing multiple changes and amendment in GST and many more are in pipe line. E-Invoice is also one of important update under GST which is going to be implemented soon (January 2020*). This will be introduced in  multiple phases for reporting of business to business invoice to GST system.This article will help you to understand the basic concept of E-Invoice along with its importance.


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What is E-Invoice under GST?

Under E-Invoice system there will be one Invoice registration portal (IRP) which will manage all B2B invoices electronically on portal by issuing one unique identification number for each invoice.
E-Invoicing is a kind of systematic process  to manage and authenticate B2B Invoices electronically which can be use further by GSTIN on common portal.
Information available on this portal will be transferred to GST Portal and E-Way portal on real time basis, which result in elimination of manual data entry work while GST return (GSTR Annex 1).
While generating E-Way bill part A will be auto filled by given information and PART B need to added in the same.

Click here to know New GST setoff rule in Tally.ERP9

Existing Mechanism for Invoicing

Currently there are many ERP or software which help to generate Invoice but there is no common standard followed by all. Invoices generated by separate software need to be uploaded on GSTR1 in form of JSON file format once GSTR1 filed successfully it appears under GSTR2A on buyer GSTIN portal for viewing purpose only. As we all know current return type are proposed to be replaces by GST Annex 1 & 2 which will be done by importing JSON file as well or excel file. Eliminating of multi software Invoices on common portal will lead seamless flow for GST annexure return.  



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How to generate E-Invoice step by step

Following are the steps or stages to get E-Invoice under GST

  • Supplier or Tax Payer need to update their existing software (Tally or any other) by coordinating software service provider and set the standard format for e-invoice (schema xml format). Software should have all mandatory field and option to generate e-invoice along with that capable to generate JSON file to upload. (Tally.ERP9 is already GSP hence they are in process to update of version which will be launch at time of implementation of e-invoice)
  • After successful updation supplier need to generate a normal invoice from software containing all necessary and standard field.
  • Once invoice raised then it need to be uploaded on IRP in JSON format file. Once invoice uploaded on IRP then it will process the invoice and verify all the detail given in invoice.
  • IRP will verify all the necessary filed mentioned in invoice and will generate one reference number in specified format.
  • Once IRP generate reference number along with that it will generate digitally signed invoice and create QR code in output JSON file at same time buyer will be notified about generation of e-invoice through mail.
  • Now IRP will upload all detail on GST & E-Way bill portal further use such as filing of GSTR Annexure and generation of E-Way bill.

(Note :- Supplier having turnover below 1.5 Cr will be given free software from department to generate invoice)



GST Settoff  entry in Tally Click here

Compulsory Fields of E-Invoice


E-Invoice should compulsory contain following detail 

  • Invoice Type :- Manual field with maximum length of 10 digit (Alpha Numeric)
  • Invoice Type Code :- This will be auto generated by GSTIN based on invoice type containing maximum 50 digit.
  • Supplier GSTIN :- Mention supplier GSTIN.
  • Invoice Number :- Any Alpha Numeric combination with maximum 16 digit.
  • Preceding Invoice Reference : In case of amendment of any invoice need to mention original Invoice number.
  • Invoice Date:- It should be in format of DD/MM/YYYY
  • Reverse Charge: Yes or NO
  • Buyer GSTIN
  • State Code of buyer: Example MH :- 27
  • Place of Supply :- Maximum 50 Character
  • Pin code
  • Unique Identification Number
  • Shipping to GSTIN
  • Shipping to State
  • Supply Type
  • Transaction Mode
  • Stock Item detail
  • Quantity
  • Rate of item
  • Assessable value
  • GST Rate
  • GST Amount as per applicability
  • Total Invoice Value

Format of E-Invoice




What will be benefit of E-Invoice?

Tax department will get direct access of the transaction on real time basis as e-invoice will be compulsory for all to generate through GST portal.

There are high chances to eliminate the chances of manipulation of invoice for the purpose of tax evasion.

Fake GST invoice will be easily track down and genuine ITC will be allowed to buyer on genuine invoice.

Expected time of Implementation of E-Invoice
Exact date of implementation can not be predicted not even by GST Council department well. However there are news that it will be implemented from Jan 2020 on trial basis (It may be postponed to April 2020)

I hope you all have now basic idea of E-Invoice. For any query of clarification you can reach me on my contacts given under my signature. Do not forget to share your feedback.

Thankyou
Regards,
Parvez Ansari
#09699333653 (gstintally786@gmail.com)