E-invoicing Under GST
E-invoicing under GST or ‘electronic invoicing’ is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal.
Under this proposed system, an Invoice Registration Portal (IRP) issues identification number against every invoice. To be managed by the India GST Network(GSTN). Invoice information will be transferred from the IRP to both the GST and e-way bill portal in real-time.
So, E-invoicing under GST Practice eliminates the need for manual data entry while filing ANX-1/GST returns as well as generation of part-A of the e-way bills.
Benefits to Businesses using e-invoice:
- It resolves and plugs a major gap in data reconciliation under GST to reduce mismatch errors.
- Provides interoperability.E-invoices created on one software can be read by another.
- Gives Real-time tracking of invoices prepared by the supplier.
- Backward integration and automation of the tax return filing process, as the relevant details of the invoices would be auto-populated in the various returns, especially for generating the part-A of e-way bills.
- Faster availability of genuine input tax credit.
- Lesser possibility of audits/surveys by the tax authorities since the required information is available at a transaction level.
Benefits to Businesses using e-invoice:
- It resolves and plugs a major gap in data reconciliation under GST to reduce mismatch errors.
- Provides interoperability.E-invoices created on one software can be read by another.
- Gives Real-time tracking of invoices prepared by the supplier.
- Backward integration and automation of the tax return filing process, as the relevant details of the invoices would be auto-populated in the various returns, especially for generating the part-A of e-way bills.
- Faster availability of genuine input tax credit.
- Lesser possibility of audits/surveys by the tax authorities since the required information is available at a transaction level.
Process of getting e-invoice using Bazaar 24x7 E-Invoicing Solution:
- Taxpayer must make minor changes to the ir existing ERP or accounting system to generate the Invoice in Json format. In the case of Oracle EBS or Orace Fusion, Bazaar24X7 has the end to end chnages rolled into the E-Invoicing offering.
- The taxpayer raises a normal invoice in the ERP or accounitng software giving all the mandatory details.
- This invoice in JSON format with all the necessary fields is uploaded to the E-Invoicing portal (IRP) using an integration tool.
- IRP will validate the key details of the B2B invoice, checks for any duplication and generates an invoice reference number (IRN).
- IRP generates the (IRN), digitally signs the invoice and creates a QR code and returns the Output in JSON format. This output has to be uploaded back into the accounting/ERP system.
- IRP sends authenticated payload to GST portal for GST returns. Also, details will be forwarded to the e-way bill portal, if applicable. ANX-1 of seller and ANX-2 of the buyer gets auto-filled for the relevant tax period. In turn, it determines the tax liability.
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Frequently Asked Questions
With the introduction of E-invoicing , is the e-way bill still compulsory?
Yes. While transporting goods, wherever the e-way bill is needed, the requirement continues to be mandatory.
How much time does it take to generate one E-invoice with IRN and QR Code?
This whole process can be performed in just a matter of a few seconds.
Do we have to make changes to our Accounting /ERP system?
Minor changes would have to be made to generate the Invoice in JSON format . Also , some fields would have to be mapped to the values accepted by the E-Invoice portal.
Does it help in generating E-way bill simultaneously?
It is a two-way process. It has two parts, Part A for buyer and seller information and part B for transporter detail i.e. Vehicle number and transporter’s Identification detail. When we upload Json payload to the IRP portal registrar (Electronic server) share that information to EWB and create Part A automatically. Now user need to provide transporter details against the IRN number on the E-way bill portal.
Can we use the same E-way bill login credentials for E-invoicing?
Yes, there is no need to generate the separate login ID and password if you have the E-way bill login credentials.
Can we upload the invoices in bulk?
Yes. E-Invoicing portal provides a Bulk Upload option. Internally , the generation of IRN will be one after another, which will not be seen by the user. For the user it will appear bulk upload and bulk receipt.
What is a Direct API option?
For companies over 500 Cr turnover, Govt. has made available the same set of API ‘s for E-Invoicing as provided to the GSP’s. Tax payers meeting the turnover criteria can directly invoke the API and upload the Invoices. Bazaar24X7 has an Install and use solution for Oracle EBS and Oracle Fusion customers who would want to explore the Direct API option now or in the future.
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