What is E-invoicing & Benefits

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. The concept of GST e-invoice generation system has been taken into consideration for the reduction in GST evasion.

Why e-Invoice?

Is your e-invoice taken into buyer’s billing/accounting system directly?If not, how is the data entered?

Manual data entry leads to the following:
  • Transcription errors
  • Wrong entries
So, e-Invoice ensures complete interoperability And eliminates manual data entry and transcription errors.

GST is a tax that we need to pay on supply of goods & services. Any person, who is providing or supplying goods and services is liable to charge GST.

Advantages of e-Invoice in businesses

Generation of invoice and its reporting will become part of business process.Also, no further reporting to GST portal or e-way bill portal.

  • It Reduces fraud, duplicates and late payment fees
  • It Enhances accounts reconciliation
  • It Reduces costs, Faster payments, Improves visibility, Increases accuracy
  • It Improves supplier/customer relationships
  • It reduces disputes and rejected invoices

Features of E-Invoice System

The taxpayers must Create an invoice with all the mandatory details. upload The invoice To IRP(Invoice Reference Portals) using GSP.
IRP will generate unique Invoice Reference Number (IRN) after authenticating which will be attached on the e-invoice and system will digitally sign the same and return to taxpayer (supplier) as well as recipient.It will also generates a QR Code containing the unique IRN along with some important parameters of invoice like GSTIN of supplier and buyer, invoice number, date, invoice value, total tax amount and HSN code of major item.This will be helpful for tax officers checking the invoice on the roadside where Internet may not be available all the time. The web user will get a printable form with all details including QR code. • The QR code will consist of the following e-invoice parameters: a. GSTIN of supplier b. GSTIN of Recipient c. Invoice number as given by Supplier d. Date of generation of invoice e. Invoice value (taxable value and gross tax) f. Number of line items. g. HSN Code of main item (the line item having highest taxable value) h. Unique Invoice Reference Number (hash) IRP will send the payload to GST portal for GST returns And will be forwarded to the e-way bill portal.

Flow of the E-Invoice Registration System

e-invoice

E-Invoice Looks like

The IRP will also generate a QR code containing the unique IRN (hash) along with some important parameters of invoice and digital signature so that it can be verified on the central portal as well as by an Offline App.
This will be helpful for tax officers checking the invoice on the roadside where Internet may not be available all the time. The web user will get a printable form with all details including QR code.
The QR code will consist of the following e-invoice parameters:

  • GSTIN of supplier
  • GSTIN of Recipient
  • Invoice number as given by Supplier
  • Date of generation of invoice
  • Invoice value (taxable value and gross tax)
  • Number of line items.
  • HSN Code of main item (the line item having highest taxable value)
  • Unique Invoice Reference Number (hash)
e-invoice