7 Steps to follow for GST E-Invoice Generation

The usage of E-invoicing is good to go to be moved down for B2B transactions in India from the month of January 2020. According to the suggestions of the GST board, the proposed E-invoicing system has 2 angles for example

  • Adoption of a standard for the invoice, which will empower standardization and quick data trade
  • Enlisting the standard invoice with Government, through Invoice Registration Portal (IRP), which will guarantee the credibility of invoices.

The E-invoicing system at first will be accessible on deliberate reason for taxpayers satisfying the criteria (having a specific turnover or specific invoice value), in this way presenting the same for every one of the taxpayers.

In a brisk review, E-invoicing is a component being acquainted under GST with control tax avoidance and enable an invoicing standard in India. With the usage of E-invoicing, the GST system will be able to approve all the B2B transactions electronically and pre-populate the same in taxpayer’s GST return forms, according to the relating details.

Advantages Of GST E-Invoicing System

The advantages of presenting E-invoicing under GST include:

  • Auto-Populated GST Anx 1, GST Anx 2 and GSTR 1 (for B2B invoices).
  • Auto-populated Part A for Eway Bill generation (taxpayer should give vehicle details in Part B to finish EWB generation)
  • Auto-sharing of transferred invoices (on IRP) with the buyers for compromise.
  • The system will auto-coordinate input credit liability with output tax.

Features Of Proposed E-Invoicing System In India

Clearing the haze about a significant misguided judgment encompassing the E-invoice generation, it isn’t required for a taxpayer to produce E-invoice through the government’s tax portal. In fact, the taxpayer can keep utilizing any accounting software of his inclination, with the main need being, the software’s capacity to create the invoice in the given e-invoicing format.

Moreover, the provider/seller is required to present these E-invoices on the GSTN portal for the approval purpose, following which, it tends to be utilized for return filing and EWB generation. Unraveling the whole procedure of E-invoice generation, directly from the invoice creation to having the same with purchasers (for compromise), here is a step by step guide  for producing a Valid E-invoice:

  • Invoice is made utilizing an accounting or billing software according to the recommended format for E-invoicing.
  • Provider can create an extraordinary Invoice Reference Number (IRN) utilizing a standard hash-generation algorithm. Generation of IRN by provider is optional. Without IRN, the IRP system of government will create the same.
  • JSON file for each B2B invoice (created through the accounting software or any outsider tool/device), alongside the IRN, whenever produced is uploaded on the Invoice Registration Portal (IRP)
  • The IRP will approve the created hash/IRN connected with JSON (whenever uploaded by the supplier)or produce an IRN and verify the file against the central registry of GST for any duplication. The IRN will be the one of a kind character of the E-invoice for the whole financial year.
  • Upon successful confirmation, the invoice will be updated with IRP’s computerized signature on the invoice information and a QR code will be added to the JSON file.
  • The transferred information will be shared to the E-way bill and GST syatem, which will be utilized for auto-population of GST Annexures and
  • The portal will send the digitallly signed JSON alongside IRN and QR code back to the seller. The invoice will likewise be sent to the purchaser on their registered email id.

While the E-invoicing system is being acquainted with check tax avoidance and simplified GST compliance for a taxpayer, it ought to be noticed that choosing the correct invoicing arrangement can play a major role in your consistence venture. IRIS Onyx, an e-invoicing arrangement from IRIS GST, is a one-stop platform for you to view, share and work together with your clients and providers the same, while dealing with the whole correspondence with the GST systems in a problem free way.

Enquire with Certicom Consulting for more details.

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Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.

Certicom Consulting

Certicom Consulting [ Kedia Arpana & Co ] is a group of Chartered Accountants in the business of Small Business Setup & Statutory Compliance including for Professionals for the past 15 years. We have been an established and popular company with an excellent track record for the best customer satisfaction.