1. Summary
  2. The need for a Standard E-invoicing system
  3. To generate E-invoice underneath GST
  4. Updating the invoice to the GST and e-way bill systems
  5. Benefits of E-invoicing system


Today, invoices generated by the vendor must be ready and reported to 2 different systems: GST Portal and e-Way Bill.

Businesses generate invoices mistreatment in totally different software systems and also the invoice details square measure entered employing an appropriate API by the payer in an exceedingly GSTR-1 comeback. Constant data is mirrored in an exceedingly GSTR-2A and created out there to recipients with ‘view only’ permission. At the same time, transporters square measure needed to come up with the e-Way Bill, either directly or by importing the invoices into the surpassing sheet or JSON manually.

To put a finish to the present endless path of work, the GST council introduced the new comeback system.

The need for a Standard E-invoicing system

Tax departments internationally square measure wanting to create the E-invoicing system a hit for 2 reasons:

  • Following a typical format permits invoices to be shared simply 
  • Invoices will be scanned by the central system

With E-invoicing, fields are going to be pre-populated while filing returns, so avoiding discrepancies throughout information entry and reconciliation.

To generate E-invoice underneath GST

The flow of a GST E-invoice system has 2 parts:

  • Communication between the business and also the Invoice Registration Portal (IRP)
  • Interaction between the IRP, the GST/ e-Way Bill systems, and also the purchaser.

Generating an E-invoice

Taxpayers can generate invoices like they commonly do, except news can currently be done electronically. Taxpayers can get to follow the E-invoice schema and submit obligatory details consequently. Here could be a list of obligatory and facultative parameters:

  • Transaction details like tax theme, provider kind
  • Document details: kind, range, and date
  • Supplier data like legal name, GSTN address, location, PIN code, and state code.
  • Buyer data like legal name, GSTN range, address, location, state code, and PIN code
  • Dispatch from address details (mandatory if it’s different from provider details)
  • Shipping details (mandatory if it’s different from the purchaser’s address)
  • Item connected details like service/ merchandise, HSN code, total quantity, GST rate, Assessable quantity, and total item price.
  • If the things square measure being captive in batches, then add batch range.
  • Invoice details embody assessable prices and total invoice value.

Besides the obligatory parameters, the Council additionally listed facultative parameters, that square measure subject to vary supported the wants of the business. Once the invoice fields are finalized, a payer must decide if the accounting or charge software system is capable of making a JSON file, which might then be transferred to the IRP.

Creating a Unique IRN

The IRP can generate a hash parameter supported by the small print submitted by the vendor, like GSTIN, document kind, document range, and monetary year. The IRP can then check if a constant invoice exists within the Central written account, and when confirming there aren’t any duplicates, the IRP can add its signature and a QR code within the invoice’s JSON information. The hash generated by the IRP is going to be the Invoice Reference range (IRN) for the E-invoice.

Updating the invoice to the GST and e-way bill systems

The digitally signed JSON with the IRN is shipped to the vendor. The uploaded invoice information is then shared with the GST and e-Way Bill system. The GST system can update the GSTR-1 for the vendor and also the GSTR-2A for the customer, which can facilitate in deciding the liability and ITC. The GST E-invoice schema can contain details like ‘Transporter ID’ or ‘Vehicle range,’ which can b wont to generate an e-Way Bill.

The government’s tax portal isn’t to blame for generating the E-invoice. It’ll be created with the help of the seller’s accounting/billing software system and their various ERP systems. The IRP can simply receive, validate, and digitally sign the invoices uploaded by the vendor.

Benefits of E-invoicing system

Generating a GST E-invoice is typically the responsibility of a payer World Health Organization reports to the IRP in GST. Next, the IRP can generate a singular IRN and a QR code. The payer is going to be able to scan this QR code, extract the IRN, and fetch invoice details. 

Here are some advantages of E-invoicing for businesses:

  • E-invoicing helps you with information reconciliation and accuracy throughout manual information entry.
  • It permits ability across businesses.
  • You will track the E-invoices in the period.
  • The E-invoice details are going to be auto-populated on legal document forms and e-way bills, creating the legal document method simple.
  • All dealing details are going to be out there online in the least time. This can eliminate the necessity for frequent audits and surveys. Variations in information will be caught by examination of input credit and output tax.
  • This initiative will build potency at intervals with the tax administration by serving to spot pretend invoices.