What is the e-Invoice Process?

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What is the e-Invoice Process?

The documents covered by the ‘e-invoice’ system are 

  1. Invoices 
  2. Credit Notes 
  3. Debit Notes 

The notified class of taxpayers to registered persons or exports is currently covered under e-invoice. 

Though different documents are covered, for ease of reference and understanding, the system is referred to as ‘e-invoicing.’ 

‘e-invoicing’ is not a generation of invoices by a Government portal. 

Taxpayers will continue to create their GST invoices on their Accounting/Billing/ERP Systems. These invoices will now be reported to ‘Invoice Registration Portal (IRP).’ On reporting, IRP will generate a unique ‘Invoice Reference Number (IRN),’ digitally sign it and return the e-invoice. A GST invoice will be valid only with a valid IRN. 

IRP will also generate a QR code containing the unique IRN and certain other key particulars. The QR code (which can be printed on the invoice) enables offline verification of whether the e-invoice has been reported on the IRP or not (using Mobile App etc.) 

E-invoice schema only mandates what particulars shall be reported in electronic format to IRP to receive signed e-invoice from IRP. On successful reporting of invoice in JSON format to IRP, the supplier receives a signed JSON from the IRP, including data of a QR code. This payload can also be converted to readable format and populated into a PDF file. If the taxpayer desires, he can print it as a paper invoice, as he is doing today, by placing an entity logo and other information, as needed. The PDF, as well as the printed invoice, will have to have the QR Code. 

Cancellation/Amendment of Reported Invoice:

Where needed, the seller can cancel IRN for an e-invoice already reported within the specified time. Amendment of e-invoice already uploaded on IRP will be done only on the GST portal while filing GSTR-1. Amendment of invoices is not possible through the IRP. There will be only one IRP. Still, more IRPs will be added to provide sufficient availability, redundancy, speed, and a diversified and distributed service to taxpayers with a choice.