Since the GST council implemented e-invoicing, B2B enterprises throughout the country have been attempting to keep up with the technology that makes business reporting easier.
Even today, though, many are unaware of the features and perks of e-invoicing. This blog will educate and assist them in not falling behind in comprehending e-invoicing.
Features of E-invoicing
E-invoicing has numerous features:
Verification of IRN for De-duplication of E-invoices
The IRP will generate an Invoice Reference Number (IRN) for each e-invoice submitted. Further, the Central Registry of GST System checks it to guarantee that no duplicate e-invoices are uploaded.
Digital Signing by IRP for Creation of Valid E-invoices
Following the upload of the invoice data to the IRP (Invoice Registration Portal), the IRP will generate the IRN and digitally sign it with the IRP’s private key. Then, the IRP will sign the full e-invoice JSON payload, including the IRN/hash. Upon that, this e-invoice becomes a valid e-invoice for the seller, and they can use it for his business dealings.
Generation of QR Codes for Tax Official’s Validation
The IRP will generate a QR code including the unique IRN (hash), other parameters, and a digital signature. The central portal or a mobile App will then confirm it. The QR code would assist tax officers in verifying the legitimacy of invoices during road checks when internet connectivity is not always available.
It consists of the following critical particulars of e-invoice:
- GSTIN of supplier
- GSTIN of recipient
- Invoice number, as given by the supplier
- Date of generation of invoice
- Invoice value (taxable value and gross tax)
- Number of line items
- HSN code of the main item (line item having the highest taxable value)
- Unique IRN (Invoice Reference Number/hash)
- Date of generation of IRN
Availability of Multiple IRPs for Interoperability
Multiple registrars (IRPs) will ensure continuous operation 24 hours a day, seven days a week. To begin, NIC(National Informatics Centre) will serve as the initial Registrar. As time goes on, we may find more registrars (IRPs).
Standardisation of E-Invoicing for Uniform Interpretation
Following industry consultation, a technical group formed by the GST Council Secretariat established specifications for e-invoices. The e-invoice schema/template has subsequently been alerted.
Multiple Reporting Modes for Satisfying User’s Needs
Numerous modes are offered, allowing taxpayers to choose the optimal mode for their needs, like:
- API-based (direct interface with the taxpayer’s system)
- API-based (connection with the taxpayer’s system via GSP/ASP)
- Free Offline Utility (IRP-downloadable ‘Bulk Generation Tool’)
In the future, web-based and mobile app-based modes will be available.
Printing of E-invoices for Submissions
The IRP sends signed JSON to the provider. This payload can be received, transformed into a readable format, and inserted into a PDF file. If the taxpayer prefers, he can print it as a paper invoice, including the entity logo and other relevant information.
Cancellation of E-invoices for a Specific Period
To cancel an existing e-invoice, you should cancel the IRN first. And then, they should cancel the e-invoice within a given time following the generation of the IRN. After that, you cannot use the invoice number from a cancelled invoice again.
Amendment of Existing E-invoices for Prior E-invoices
IRP allows for amendment. Amendment of already uploaded e-invoices can be made only on the GST portal while filing GSTR-1.
Advantages of E-invoice From a GST Perspective
E-invoice has many benefits for businesses, such as
- Automation of reporting documents for various compliances in GST. It reduces the need to provide the same data in multiple forms (GSTR-1, e-way bill etc.)
- Reconciliation of the Purchase Order after receiving information from the GST System
- Reduction in tax evasion and a complete audit trail for B2B invoices
- Input credit and output tax matching at the system level and fraud mitigation by the elimination of fake invoices
- Facilitation of standardisation and interoperability
All these benefits combined reduce disputes among transacting parties, improve payment cycles, reduce processing costs and thereby significantly improve overall business efficiency.
How Does myBillBook Improve Your E-invoices Generation Experience?
So far, you have read about how e-invoicing benefits you. Have you wondered whether there is a way to make it easier? If you are still struggling with e-invoicing, you can always get help from e-invoicing softwares like myBillBook.
It is effortless. All you have to do is to be a GST-registered business and purchase the enterprise plan of the software.
Then it is just a matter of enabling a toggle that says “ Enable e-Invoicing.” Here is how you do it:
- After you have signed up and logged in, Go to company settings.
- Select “Are you GST Registered” as yes, and input your GSTIN
- When you turn the toggle on, you will see a confirmation modal from where you can check your e-invoicing enablement status from the govt portal – https://einvoice1.gst.gov.in/Others/EinvEnabled.
- Afterwards, click “Enable e-invoicing” to turn on e-invoicing for this company.
- In doing so, the e-invoicing tab will start appearing for the user in the left navbar.
- You can also disable the same by turning the e-invoicing toggle off if you wish.
FAQs on E-invoicing
Is e-invoicing accessible in all myBillBook plans?
No, it is only available in myBillBook's enterprise package.
What exactly is a GSP?
GSP is the short form of GST Suvidha Provider. GSP is a gateway to the GST Portal for ASPs. Therefore, the safest way to access the GST portal is through GSP, a government-approved ASP.
Is it possible for a taxpayer to sign an e-invoice?
Yes, the e-invoice schema includes a space for digital signatures. As a result, sending a signed e-invoice to the Invoice Registration Portal (IRP) will be accepted.
What happens once you upload the e-invoice to the IRP?
The IRP will validate and digitally sign the e-invoice based on the most recent revisions to the proposed system. Before delivering the e-invoice to its creator, it will generate a unique Invoice Reference Number (IRN) and a QR code.
Can I cancel the e-invoice partially or entirely?
There is no method to cancel an e-invoice in part. However, once established, you can cancel the e-invoice ultimately cancelled. The cancelled invoice should be submitted to IRN within 24 hours of cancellation and manually cancelled on the GST site before filing returns.
Can I modify an e-invoice?
You can adjust the e-invoice, but only the details are uploaded in GST returns.