Post GST adoption and acceptance, e-Invoicing under GST has now become an integral part of business operations for Indian taxpayers. e-Invoicing under GST system has already been implemented in India since October 01, 2020. A lot of businesses, however, find it confusing with its evolution. Keeping this in mind, we have tried answering some frequently asked questions related to e-Invoicing.
1. What is e-Invoicing under GST?
e-Invoicing, a.k.a Electronic Invoicing, is a process to make invoices more authentic and compliant for tax return filing purposes for B2B businesses. An e-Invoice consists of invoice data in a more structured visual presentation. With the adoption of e-Invoice systems, businesses can pre-populate the returns for filing purposes and get rid of reconciliation challenges. Businesses can share invoice data to the GST system by integration of IRP (Invoice Registration Portal) via GSP (GST Suvidha Provider) for validation.
2. What is an e-Invoicing solution?
An e-Invoicing solution is a platform that enables businesses to create invoicing documents and details based on the defined e-Invoicing format. Further, it allows the business to store this e-Invoice on cloud or be integrated into the buyer’s Accounts Payable system. With this, managing the productive workflow becomes easier for a business.
3. How to generate an e-Invoice under GST?
To generate an e-Invoice, the applicable taxpayer must start with creating API credentials on the e-Invoicing portal. Once this is done, they need to send the JSON file of their invoices to the IRP (Invoice registration portal) via an ERP or a GSP (GST Suvidha Provider). The IRP validates all the details and generates an IRN (Invoice Reference Number) and a QR code for that invoice. This invoice with the IRN and a QR code is an e-Invoice.
Next, this data gets transferred to the e-Way Bill system. There are two segments of the e-Way Bill system – Part A and Part B. When an e-Invoice is sent to the e-Way Bill system, Part A of the system gets generated and with the addition of the transporter’s details, it also generates Part B.
4. What is the process of generating an e-Invoice with Open?
To create an e-invoice with Open, you must create API credentials on the e-Invoice portal. Learn how to create API credentials by following these simple steps. Once you are ready with your API credentials, validate all your created/ imported invoices and get started with e-Invoicing with Open. If you enable the e-Invoice toggle while creating an invoice with Open, you can generate an e-Invoice for that invoice then and there. If not, you may find all your applicable invoices listed as ‘Not Generated’ in the e-Invoice report. Simply choose the invoices and convert them into e-Invoices in a click.
e-Invoicing
For more FAO's related to e-Invoicing:
1. What is e-Invoicing applicability under GST?
2. Is e-Invoicing mandatory?
3. Which businesses are not required to generate e-Invoices?
4. What are the benefits of e-Invoicing?
5. What kind of supplies are covered under e-Invoicing?
6. What kind of documents are to be reported into the Invoice Registration Portal?
7. What are the mandatory fields in an e-Invoice?
8. Is e-Invoicing applicable to nil-rated or wholly-exempt supplies?
9. How to validate the details of an e-Invoice?
10. Can an e-Invoice be cancelled partially/fully?
11. How does Open’s e-Invoicing solution benefit businesses?
