GST E-Invoicing


At Taxhint Advisors, our advanced GST e-invoicing solutions are designed to simplify and accelerate your compliance process. With real-time integration and automated data capture, you can generate, validate, and submit GST invoices effortlessly.

Taxhint Advisors provides a seamless, efficient approach to e-invoicing, ensuring your business remains compliant with the latest GST regulations.

Experience hassle-free GST e-invoicing today!

GST E-Invoicing

Under GST, the electronic creation of invoices required by regulations is referred to as "e-invoicing." Certain GST-registered businesses must also provide electronic invoices for Business-to-Business (B2B) transactions, in a manner akin to the requirement that they issue e-way bills when moving products.

According to the most recent updates, e-invoicing will be required for all GST-registered people whose total turnover (as per their PAN) in any previous fiscal year from 2017–18 onwards surpasses five crores, beginning on August 1, 2023.

Taxhint Advisors presents the LEDGERS GST e Invoicing software, which is intended to make the e-invoicing process for companies easier and more efficient, in order to enable a seamless transition to e-invoicing.

Try LEDGERS today!

E Invoicing under GST

Under the terms of India's GST architecture, B2B invoices are digitally verified through the e-Invoice system, wherein the GST Network (GSTN) authenticates them. With the use of this system, each invoice may easily be assigned a unique identification number using the GSTN-managed Invoice Registration Portal (IRP).

The GST and e-way bill portals receive an instantaneous transmission of all invoice details from the invoice portal upon generation. This synchronisation streamlines the GSTR-1 return filing and part A e-way bill generating procedures by doing away with the requirement for human data entry.

GST Advantages

Benefits of the E-Invoicing System

Streamlined Reporting and Efficient Record-Keeping

E-invoicing makes it possible to record B2B invoices once at the moment of generation, eliminating the need to report in multiple formats. It simplifies maintaining sales and purchase registers, aiding in the swift preparation of GST reports.

Automated Tax Filing and E-Way Bill Generation

The integration of e-invoice data with the GST portal automates tax filing by pre-filling return forms and reducing manual work. It also facilitates easy e-way bill generation, streamlining logistics and transportation processes.

Enhanced Reconciliation and Real-Time Tracking

E-invoicing reduces errors and saves time by minimizing the need for reconciliation between financial records and GST filings. Real-time tracking enhances verification, speeds up the certification of input tax credits, and improves financial efficiency.

Fraud Prevention and Elimination of Fake Invoices

Real-time data access enables tax authorities to detect and prevent fraudulent activities. The e-invoicing system also helps reduce the issuance of fake GST invoices, thereby safeguarding the integrity of the tax system.

Reduced Audits and Enhanced Financial Management

The comprehensive transaction-level data provided by e-invoicing reduces the likelihood of tax audits and administrative burdens. This transparency promotes better cash flow management and financial oversight, fostering greater trust and efficiency.

GST einvoice Applicability

The obligatory e-invoicing GST eInvoice limit has been gradually lowered by the Indian government. According to the most recent modification, all covered transactions for any organisation that had a total revenue of more than Rs. 5 crore during the preceding fiscal year had to be generated as electronic invoices. August 1st, 2023 was the date of implementation of this revision.

Transactions and Documents Requiring GST e-Invoicing

If your business falls under the current threshold and deals with any of the following transactions, you must generate e-invoices through the GST portal:

  • Documents:
    Tax invoices, credit notes, and debit notes are defined under Section 34 of the CGST Act.
  • Transactions:
    Taxable Business-to-Business (B2B) sales of goods or services
    Business-to-Government (B2G) sales of goods or services
    Exports and deemed exports
    Supplies to Special Economic Zones (SEZs) with or without tax payment
    Stock transfers or supplies of services to distinct persons within a SEZ
    Transactions with SEZ developers
    Supplies made under the reverse charge mechanism (Section 9(3) of the CGST Act)

Who is exempted from generating e nvoice GST?

While e-invoicing GST is becoming increasingly mandatory, certain categories of registered persons are exempted from these provisions. Here's a breakdown of who can skip e-invoicing for now:

Financial Institutions:

This exemption covers a broad range of entities within the financial sector, including:

  • Insurers
  • Banking companies
  • Financial institutions
  • Non-banking financial companies (NBFCs)

Goods Transport Agencies (GTAs):

If your business provides services related to the transportation of goods by road (in a goods carriage), you're exempt from e-invoicing.

Passenger Transport Service Suppliers:

This exemption applies to businesses offering passenger transportation services.

Multiplex Cinemas:

Registered individuals providing services through admission to exhibition of cinematograph films on multiplex screens are not required to generate e-invoices.

SEZ Units:

Businesses operating within Special Economic Zones (SEZs) are exempt from e-invoicing. It's important to note that this exemption applies only to SEZ units and not SEZ developers.

GST invoice Format

According to GST regulations, the e-invoice format is known as Form GST INV-1. In layman's words, Form GST INV-1 describes the e-invoicing structure or schema. This form acts as a uniform template for electronically capturing the details of invoices. These details need to be provided in JSON format in order to be reported to the Invoice Registration Portal (IRP).

The e-invoice format encompasses eight main categories, under which various details will be provided. These categories are as follows:

  • Basic Details
  • Invoice Period
  • Preceding Document / Contract Reference
  • Receipt / Contract References
  • Supplier Information
  • Buyer Information
  • Payee Information
  • Delivery Information

Mandatory Information for E-Invoicing

When preparing eInvoices, ensure to include the following mandatory details for compliance and accurate reporting:

  • Code for Supply Type

    Indicating the supply type, such as B2B for business to business, EXPWP for export with payment, or SEZWP for SEZ with payment.

  • Code for Document Type

    Identifying the document type, such as INV for Invoice, CRN for Credit Note, or DBN for Debit Note.

  • Document Number

    The invoice number follows GST rules and regulations.

  • Document Date

    The date on which the invoice was issued.

  • Supplier Legal Name

    The legal name of the supplier, consistent with their GST registration.

  • GSTIN of Supplier

    The GST Identification Number of the supplier.

  • Supplier Address

    The complete address of the supplier, including specific details like flat number and building number.

  • Supplier Place, State Code, and PIN Code

    The location details of the supplier, including the place, state code, and six-digit PIN code.

  • Buyer's Name and GSTIN

    The buyer's legal name, along with their GST Identification Number.

  • Place of Supply (State Code)

    Indicating the state code for the place of supply.

  • List of Items

    Providing comprehensive information about the goods and services invoiced, including item descriptions, HSN codes, prices, and more.

  • Document Total Details

    Provide details of the document total, including taxes, discounts, and other relevant calculations.

  • Ship-To Details (if applicable)

    Furnishing details regarding the shipping location if different from the buyer's address.

Documents Required for E-Invoicing

For e-invoicing under the GST framework, the following documents are necessary:

  • Tax Invoices, Credit Notes, and Debit Notes:
    These should be issued in accordance with Section 34 of the CGST Act.

    • Applicable Transactions:

  • Taxable Business-to-Business (B2B) Transactions:
    Includes the sale of goods or services to other businesses.
  • Business-to-Government (B2G) Sales:
    Involves transactions where the government is the recipient of goods or services.
  • Exports and Deemed Exports:
    Transactions that involve sending goods or services out of the country or those treated as exports under GST laws.
  • Supplies to Special Economic Zones (SEZs):
    This can be with or without tax payment and includes supplies made to SEZ developers.
  • Stock Transfers or Services to Distinct Persons:
    Transactions within the same company but across different states or jurisdictions.
  • Supplies Under Reverse Charge:
    As specified under Section 9(3) of the CGST Act, where the recipient is liable to pay GST.

Procedure for Generating & Uploading the eInvoice

The GST einvoice system follows a standardised format for generating and transmitting invoices. Here is a step-by-step process of how it works:

Step 1: Generation of E-Invoice

Invoices will be generated by taxpayers as normal, but they also need to be electronically reported using the e-invoice schema, which has required fields. Important information needed is as follows:

  • Invoice Basics: Type, number, date
  • Supplier Information: Name, GSTIN, address
  • Buyer Information: Name, GSTIN, address, payment details
  • Transaction Details: Dispatch and item details, tax amount, payment status
  • Goods Details: Serial number, quantity, rate, GST rate, total value

The invoice data must be converted into JSON format using one of the following:

  • An updated accounting/billing system
  • A utility or tool integrating with the system, ERP, or via an offline tool

Step 2: Generation of Unique IRN

Suppliers can use information such as the GSTIN, invoice number, and financial year to create a preliminary "hash," or unique code. The SHA256 algorithm is used for this. The hash becomes the Invoice Reference Number (IRN) if it is validated.

Step 3: Uploading the JSON

The JSON file of the invoice can be uploaded through various means:

  • Directly on the Invoice Registration Portal (IRP)
  • Via a GST Suvidha Provider (GSP)
  • Through third-party apps, including APIs

A hash produced by the supplier may be uploaded with the JSON if it exists. The seller must electronically scan and add the QR code and the Invoice Reference Number (IRN) on the actual invoice that is sent to the recipient as soon as the invoice has been successfully submitted.

Step 4: IRP Validation of Invoice Information

The IRP checks the uploaded JSON for accuracy and generates an IRN while ensuring there is no duplication in the Central Registry of GST. The generated IRN uniquely identifies the e-invoice throughout the financial year.

Step 5: QR Code and Digital Signature

Digitally sign the accompanying QR code and the e-invoice once the IRN has been generated. Important information including the supplier and recipient GSTINs, the invoice number, date, invoice value, line item count, and the primary item's HSN codes are all included in the QR code.

Step 6: Data Transmission to E-way Bill Portal and GST System

The e-way bill site and the GST system both receive data from the IRP, which makes it easier for the GST annexures to automatically populate.

Step 7: E-Invoice Receipt Sent to Supplier’s ERP

Ultimately, the JSON file, IRN, and QR code are returned to the seller's ERP system by the IRP. The buyer then receives an email with the invoice attached.

Integration of E-Invoicing with GST Returns

The integration of e-invoicing with GST Returns involves a systematic process that streamlines the tax reporting workflow.

  • Validation and Registration: Ensure the GST eInvoice is validated and registered by the invoice registration system before inclusion in GST returns.
  • Recipient Access: Once validated, the recipient can view and act upon the e-invoice in the new return system.

The main goal of this integration is to facilitate the pre-population of GST returns, overcoming reconciliation issues by automating data entry from invoices into the relevant tax return sections.

This process enhances efficiency, accuracy, and compliance in tax reporting, reducing reconciliation-related problems.

Cancellation of E-Invoices

Specific rules apply to amending or cancelling e-invoices:

  • Partial vs. Full Cancellation: An e-invoice must be cancelled in full; partial cancellations are not allowed.
  • Reporting Within 24 Hours: Notify the Invoice Reference Number (IRN) of the cancellation decision within 24 hours of upload.
  • No Post-24-Hour Cancellation: After 24 hours, cancellations must be handled manually through the GST system before return filing.

Amendments to an E-Invoice

Amendments to e-invoices can only be made via the GST Portal. To modify an e-invoice, taxpayers must access the GST Portal and follow the prescribed process.

Utilizing the GST Portal for amendments ensures accurate tax records and compliance with GST requirements, facilitating effective tax management.

Generate Your GST eInvoices Quickly with Taxhint Advisors LEDGERS Software

Ready to simplify your GST e-invoicing process? Look no further! Taxhint Advisors offers LEDGERS GST e-Invoicing software that makes creating GST invoices a breeze. Don’t waste any more time struggling with complicated invoicing systems.

Automatic e-Invoice Generation:

Create GST e-invoices with QR codes directly from your web browser, mobile app, or API.

Multiple Generation Options:

Choose your preferred method - web, mobile app, API, or Excel import.

Seamless e-Way Bill Management:

Generate and share e-way bills for goods transportation within LEDGERS.

Simplified Tax Filing:

Standardized formats and real-time data make filing GST returns effortless.

Reduced Workload:

Save time and resources with automatic e-invoice generation and reduced manual data entry.

Contact our experts today and let us assist you in getting started with efficient GST e-invoicing for your business.

Say goodbye to the hassle and hello to streamlined invoicing with LEDGERS!

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