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Guide To GST E-Invoice

What is a GST e-invoice?

GST e-invoice is the introduction of the digital invoice for goods and services provided by the business firm generated at the government GST portal. ‘e-Invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. An identification number is issued under the electronic invoicing system against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network(GSTN).

How is e-invoicing beneficial to businesses?

Businesses will have the accompanying benefits by utilizing e-invoice initiated by GSTN: 

  • E-invoice resolves and plugs a significant hole in data reconciliation under GST to reduce bungle errors.
  • E-invoices created on one software can be read by another, permitting interoperability and reducing data entry errors.
  • Real-time following of invoices prepared by the supplier is enabled by e-invoice.
  • In reverse integration and mechanization of the tax return filing process, the invoices’ relevant details would be auto-populated in the different returns, especially for generating section of e-way bills.
  • Faster accessibility of genuine information tax credit.
  • E-invoices reduce the chance of reviews/surveys by the tax authorities since the data they require is available at an exchange level.

Elements of an electronic invoice under GST

The e-invoice schema contains both compulsory and discretionary fields. The required fields should be necessarily there for an invoice to be substantial under the e-invoice standard. The discretionary fields are those that might be incorporated according to the business needs. The greatest number of line items per e-invoice is 100. Every one of the required fields is to be filled in to register an e-invoice on the IRP. A compulsory field with no value can be reported as NIL. 

An overview of the obligatory sections are as per the following:

  • Essential details 
  • Supplier’s data 
  • Recipient’s data 
  • Invoice item details 
  • Document complete

An overview of the required annexures are as per the following:

  • Invoice item details 
  • Document complete details

How to generate an e-way bill?

When moving goods between any two points, where the total value exceeds Rs. 50,000, GST mandates the transporter of the goods to carry an e-way bill. The Government of India has set up a portal to generate an e-way bill in a few easy steps.

1. Log in to the portal.

Just by clicking on the link above, you can access the portal. If you’re a first-time user, you will have to create your login credentials. To do this, the following is mandatory:

  1. GST registration
  2. Transporter registration

2. Click on the “Generate New” option.

You’ll see the Generate New option on the left-hand side of the portal (if you have trouble locating this feature, you can use the “find in page” aid of your browser and look for “Generate New”).

3. Fill in the required information.

  • If you are a supplier, your transaction type will be “outward.”
  • If you are the receiver, your transaction type will be “inward”, and you will be required to enter the details required along with the GSTIN number as required.

Note: When you input the GSTIN number, certain fields will be auto-populated.

4. Enter goods description.

  • The product name and description must match what is mentioned in the invoice on the transaction.
  • Enter the HSN code of the product (if you are unaware of this, you can find it at this link.
  • Enter the CGST or IGST rate that applies to this transaction:
  1. IGST is applicable in the case of inter-state transport
  2. CGST is applicable in the case of intra-state transport
  • Enter the distance of the transport (a simple way to estimate this would be to use google maps) – this will validate your e-way bill.

5. Click on “Submit.”

  • After the previous steps are completed, verify the details entered as a practice to correct errors that may have occurred during the earlier steps.
  • Now, click on “Submit,” which will then generate your e-way bill, which contains your e-way bill number and QR code, having all the information.
  • The bill should be printed and carried by the transporter throughout the journey till the goods are handed over to the receiver.

How to make the best of myBillBook for  GST e-invoicing?

  • Billing software gets started on creating GST and non-GST inclusive invoices (as per your preference) within seconds. All you need is:
  1. GSTIN of both parties (if applicable for the party)
  2. Billing and shipping address of the party
  3. Consecutive invoice numbers
  4. Date of issuance
  5. HSN code of items
  6. CGST/SGST/IGST on items (as applicable)
  7. It projects a professional and sophisticated image with professional-grade paper bills.
  • You get regular notifications on the status of payables and receivables using our free accounting invoicing app,
  • It provides 24×7 access to sale and purchase orders and allows you to monitor them till they’re delivered/received by relevant parties.
  • myBillBook paid invoice app helps you save warehouse space by assessing the demand for the various stocks so that you can make purchasing decisions accordingly.
  • You receive 10+ exclusive reports that ensure smooth functioning of the business, like: 
  • Sales summary 
  • Profit and loss reports 
  • Party statements 
  • Stock summary 
  • GSTR 1 (Sales) [paid feature]
  • GSTR 2 (Purchase) [paid feature]
  • GSTR 3B [paid feature]
  • Protect your data with daily automated backup and sync your mobile app with your desktop software. This way, you can access all your records on the go through your mobile phone.
  • Create purchase vouchers, payment receipts, quotations (estimates/sale orders), purchase orders, sale returns, purchase returns, delivery challans, and expense vouchers from your mobiles.
  • You can upload a full inventory of the stocks by transferring items from other accounting apps or with the use of excel sheets and images.
  • As an additional feature, myBillBook has a feature for automated purchase orders. Whenever a particular stock is about to reach its lower limit, myBillBook places an order to maintain the inventory.