Guide for generating e-invoice Under GST

In the 37th Council Meeting, the E-invoice scheme was acknowledged officially by the GST council. Those who are up for generating an e-invoice can follow the steps given below.

What basically is GST E-invoice?

It is here to be cleared that e-invoice is not just another invoice that one can have downloaded or that can be generated through the GST portals. Rather, it is a method of doing validation of the entire B2B invoices through electronic mode through GSTN or GST Network. It is not possible for a person to generate the e-invoices straight through the regular portals.

E-invoicing or the process of authenticating is essential for making sure that the invoice that the accounting software generates is authorized to be used for the methods like e-way bill generation, as well as GST return filing. In this process, the business invoice submission process generated by various accounting tool with the GST Portal, with the aim of verifying the same in a genuine fashion.

Formats are essential to differ for the invoices generated from one GST return filing software to the other. Hence, it is not possible for all these to be fetched straight within the GST system by the software. Hence, the government came up with the idea of introducing a basic format or a Schema where it is essential for a whole range of accounting software to follow one format in common that can be uploaded within the GST portal for the purpose of authentication and for validation.

All in all, E-invoice is a basic structure or schema meant for facilitating data exchange among various GST billing tool from different developing companies.

How useful is the GST E-invoicing System?

  • Reporting and the process of authentication of the B2B invoices from the regular portal can make sure that the GST ANX-1 and ANX-2 are prepared automatically in the latest format.

  • It also goes for auto preparation of GSTR 1 for the B2B supplies. E-invoicing can also be used for generation of e- way bills upon providing the details of vehicle.

  • Suppliers uploading invoices for the process of authentication is going to be shared with the buyers for reconciliation in an automatic fashion.

  • The system is going to do an automatic match of liabilities of input credit through output tax.

  • One can generate e-invoice for a range of documents, including debit notes, credit notes, invoices, and a whole range of other applicable documents.
All about IRP on GST E-invoicing

E-invoicing, in other words, electronic invoicing, has become already essential from 1st October in 2020 for the whole range of transactions, including B2B and B2G, for large and mid-range taxpayers. But, the adoption was made voluntary from 1st January 2020. National Information Centre has come up with registration scope of e-invoices within the Invoice Registration Portal or IRP through API mode, along with different other modes. These APIs help the taxpayers and GSPs to bring together their business structure and processesas part of an e-Invoice pattern for smooth and hassle-free registration and to generate invoice over their system.

Additionally, the Invoice Registration Portal or IRP also helps the developers or the whole system of taxpayers’ integrator to have clarity regarding inclusion of e-invoicing system as part of the business methods and let the user’s registration have access to the APIs. At the same time, IRPs or Invoice Registration Portal also help in API documenting upon providing key details like URL, JSON Schema of the payloads requested, samples of responses, a sample of request payload, application being made for validation and equivalent details that an application developer is essential to couple with the system.

IRN portals also are useful in terms of helping the developers in facilitating end level APIs usage. This involves understanding the process of generating request payloads, encrypting and decrypting the requests and answers and evaluating the flawlessness of encryption.

Methods for generation of GST E-invoice

Concerned taxpayer or the business holds the responsibility of generation of invoices and then submitting the same at the Invoice Registration Portal or IRP in order to approve. Post verifying successfully; the portal sends the invoice back to the supplier along with an explicit reference number, apart from digital signature and QR code. The e-invoice is going to be shared among the concerned buyer on the given email id. Check out the steps below.

Step 1: Generation of Invoice

Here the seller or supplier is going to generate an invoice in the desired format or e-invoice scheme through therespective accounting tool or billing tool. There must be complete essential detail in it.

The accounting tool of the supplier is going to create JSON for every B2B invoices. The JSON file is going to be uploaded within IRP.

Step 2: Generation of IRN

The next step is going to be about generation of an explicit IRN or Invoice Reference Number by the seller upon using a basic hash-creation algorithm.

Step 3: Uploading the Invoice

In this step, the seller is going to upload JSON for every single invoice, along IRN, within the Invoice Registration Portal, which can be done straight away or using external software.

Step 4: Step for authentication and Signing

IRP is going to do the validation of hash or IRN along with JSON or create an IRN, in case it’s not uploaded already by the supplier.

Next, it is going to delve into the process of authentication of the file with the GST’s central registry.

After the verification is done successfully, then the signature is going to be added within the Invoice and QR code with ISON.

Previously created hash is going to be the fresh IRN or the e-invoice. It is going to be the explicit identification of the e-invoice for the whole financial year.

Step 5: Process of sharing the data

The data that is uploaded is going to be shared through the E-way bill and along GST system.

Step 6: Downloading the e-invoice

The portal will deliver back the JSON with a digital signature along with IRN and QR code to the seller. The invoice is going to be delivered as well to the buyer over the email id registered by them.

Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

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