Are you ready for GST e-invoice

Are you ready for the GST e-invoice? 

Hi, Friends, in today's article we are going to discuss the new GST e-invoice, and find the answers “Are you ready for the E-invoicing”.



So, let’s start with some common questions.
What is a GST e-invoice?
Who needs to issue e-invoices?
What is the process of issuing the e-invoice?
What is the start date to issue an e-invoice?
What are the benefits of e-invoicing?
Who is not required to be issued an

e-invoice? 

What is a GST e-invoice?

GST e-invoicing (Electronic invoicing) is a new computerized system in which suppliers need to upload the business to Business B-2-B transaction/invoices details on the centralized portal and authenticated electronically by the GSTN portal for further use for the tracking of seamless flow of the ITC (Input tax credit.) and the e-invoice data will auto-populate for the buyer/recipient end for the validation. 

Who needs to issue e-invoices?

As per the notification of GST (Notfn No. 61 Dated: 30th July 2020), this system has been enabled for taxpayers with PAN-based turnover of more than Rs 500 Crores, during the financial year 2019-20.
(earlier this annual aggregate turnover was ₹100crores.) The notified taxpayers' aggregate turnover over Rs 500 crores has to generate the IRN(e-invoice Reference Number) for the taxable supplies/sales.
One thing that needs to be noted here that is the IRN can be generated by the supplier/seller only and not by the buyer/recipient or transporter.

What is the process of issuing the
e-invoice?

The IRN(e-invoice reference number) needs to be generated for the documents of Invoices, Debit Notes, and Credit Notes for all the local (Intrastate), interstate (out of state), and export transactions.

The taxpayer/supplier needs to upload the total invoice details, prepared manually or through an internal ERP/accounting

system(e.g.SAP), as per the format, and
after due validations of the data, the system returns the IRN with the signed invoice and QR code back to the taxpayer.
The IRN, Acknowledgement No, Date, and QR code has to be printed by the taxpayer/supplier on the invoice being issued to the buyer/recipients.  

What is the start date to issue an e-invoice?

the new system will be going to be live on the 1st, of October 2020. The e-invoicing will be done from Enterprise Resource Planning software that organizations use to manage daily business activities like accounting, procurement, supply chain Operation, 

project management, risk management, and compliance.

What’s new in e-invoicing?

The government released new API specifications for e-invoicing in May. 

The Central Board of Indirect Taxes and Customs (CBIC) also notified a new refined format of e-invoices last week of July 2020.
It has added 20 new fields, removed 13 fields, and even changed the character length in certain fields. Integration of the new QR code requirements for corporate tax with GST, implementing of a robust 

technological structure with minimal problems, and treatment of industry-specific exemptions under e-invoicing is the other
The new step will also have an impact on the way to select their vendors. 

Companies would prefer doing business with the big vendors who fall in the category of those required to generate e-invoices rather than those vendors
below an annual turnover of ₹500 crores who can do without the new invoicing,

What are the benefits of e-invoicing?

As companies start generating e-invoices whenever they sell products or services to their business clients, these invoices will be authenticated electronically by GSTN for further use on the common GST portal.

This live tracking of each transaction reduces the risk of fraud, denying extra time to the sellers to manipulate their sales bills unlike in the previous system where audit teams.

It will also eliminate the need for manual data entry while filing GST returns as the information is passed directly to the GST portal.

Under the proposed e-invoicing system, an identification number will be auto-generated against each and every invoice by the centralized Invoice Registration Portal (IRP) which will be managed by the GSTN.

All invoice data will be shifted from this portal to both the GST portal and e-way bill portal in real time.

E-invoicing is intended to streamline tax payments, enhance tax collections in the longer term and self-regulate the system for claiming GST input tax credit

Who is not required to be issued an
e-invoice?

As per Notification No. 61 Dated: 30 July 2020, e-invoicing is mandatory for registered persons having turnover above INR 500 Crore, it means if your turnover for the previous year i.e. 2019-2020 is less than 500 cores you are not required to issue an e-invoice from the 1st Oct. 2020.
Irrespective of the turnover in the previous year, e-invoicing shall not be applicable to the following categories of registered persons:

1. SEZ Unit (Exempted vide Notification No. 61/2020-CT dated 30.07.2020)

2. The insurer or a banking company or a financial institution, including an NBFC

3. A Goods Transport Agency (GTA)

4. A registered person supplying passenger transportation services and

5. A registered person supplying services by way of admission to the exhibition of cinematograph films in multiplex screens.

Sample e-invoice



So, Friends, you need to register your business with your login credentials at the
https://einvoice1-trial.nic.in/ and need to develop API based on your ERP software, you can take the help of the GSPs (GST Suvidha Providers).

as a GST practitioner or a working professional one should need to adopt the new changes in the tax system. As the government is very keen to control the fraudulent transactions in the system to maximize tax collection, So, as a responsible citizens, we all should need to support the government of India for the betterment of the country.
Thanks for reading if you like please share and if you have any queries please write in the comment box.


CMA knowledge team.