GST – GSTIN has issued an e-invoice glossary and a step-by-step guide for taxpayers
Key Pointers –
- GSTIN has issued an e-invoice glossary and a step-by-step guide for taxpayers. The concept of e-Invoicing involves reporting specific GST documents to a government-approved portal known as the Invoice Registration Portal (IRP) and to obtain an Invoice Reference Number (IRN). This process doesn't involve the generation of invoices by a government portal.
- There are six authorized portals for generating IRNs as per CGST Rules. IRNs are unique identifiers based on certain factors. A taxpayer's Annual Aggregate Turnover (AATO) determines their e-Invoicing requirement, which can be auto-enabled based on their PAN and GSTR-3B returns. Otherwise, taxpayers need to be self-enabled on the GST portal.
- A unique identification number assigned to each registered taxpayer under the GST system called GSTIN. The e-Invoice QR Code is a two-dimensional barcode with invoice details. The e-Invoice QR Code Verifier App allows validation. The e-Invoice FO Portal provides e-Invoice services. JSON Format is used for uploading invoice data.
- APIs (Application Programming Interface) facilitate e-Invoice reporting, while ERP systems generate invoices but require reporting on an IRP. OTPs verify registration on IRPs. Auto-population fills GSTR-1 with e-Invoice data. The e-Invoice schema defines the invoice structure, and master codes are predefined codes like HSN and currency codes. A signed e-Invoice is validated, digitally signed, and given an IRN and QR code.
- Those with an aggregate turnover exceeding specified limits are mandated to adhere to e-Invoicing, aiming to enhance efficiency and compliance. However, certain exemptions exist based on notifications.
- The e-Invoicing process involves taxpayers generating GST invoices using their systems, then reporting them to IRPs. IRPs validate and return signed e-Invoices with unique IRNs and QR codes. Only invoices with valid IRNs are considered for B2B transactions.
- Eligible taxpayers are automatically enabled for e-Invoicing on IRPs based on government notifications. The status can be checked on the e-Invoice portal. If not enabled, taxpayers can self-enable.
- Taxpayers must register on any of the six authorized IRPs before reporting e-invoices. A one-time verification using OTP validates mobile number and email, creating login credentials. Taxpayers report e-invoices using the predefined INV-01 schema in JSON format on the IRP portal.
- The IRN of an e-Invoice can be verified using the GSTN e-Invoice QR Code Verifier app or the "Search IRN" functionality on the e-Invoice portal. GSTN provides an e-Invoice master information portal which centralizes e-Invoicing resources, offering access to master codes, enablement status checks and more at https://einvoice.gst.gov.in.