Unlock digital transformation with our advanced E-Invoice solution

E-Invoicing (electronic invoicing) is the process of sending and receiving B2B invoices in a standardized format that both the sender’s and the recipient’s accounting systems can read. E-invoicing enables automated data capture of invoice information. This removes the need for time-consuming and error-prone manual data entry.

Taxpayers need a system/utility to report E-Invoice details in JSON format to IRP/ ASP/ GSP and receive signed E-Invoice in JSON format.

From 1st October 2022 , E-Invoicing is applicable for businesses with a turnover exceeding 10 crores.

1. Auto-reporting of Invoices into GST return.
2. Auto-generation of an E-Way bill.
3. Interoperability of E-Invoices.
4. Improve payment cycles.
5. Cost-efficient.
6. Low carbon footprint.

E-Invoicing involves submitting an already generated standard invoice on an E-Invoice portal or Invoice registration portal for validation and authentication by the GST Network.

IRN stands for Invoice Reference Number in the context of e-invoicing. It is a one-of-a-kind identity issued to an electronic invoice in order to assure its uniqueness and traceability. The Invoice Registration Portal (IRP) generates the IRN.

Taxpayers having an Annual Aggregate Turnover (AATO) of Rs.100 crore or more must create E-Invoices for tax invoices and credit-debit notes within 7 days of the invoice date, otherwise they would be considered non-compliant, beginning May 1, 2023*(*which is now postponed by three months).

Penalty for non generation of E-Invoice – 100% of the tax due or Rs. 10,000, whichever is higher, for every invoice. Penalty for incorrect invoicing – Rs. 25,000 per invoice.

• Special Economic Zone Units
• Insurer 
• Banking businesses or financial institutions, including a non-banking financial company (NBFC)
• Goods Transport Agency (GTA) providing services related to goods transportation by road in a goods carriage
• Passenger transport service providers
• Service providers who provide admission to cinematograph film screenings in multiplex screens.
• Individuals registered under Rule 14 of the CGST Rules, 2017
• Online Information Database and Retrieval Services (OIDAR) 
• Government department and local authority.

The process of E-Invoicing in SAP does not require the company to create invoices using the government’s software system. Instead, it involves submitting information about the company’s pre-generated invoices from their ERP system to the Invoice Registration Portal (IRP). Once submitted, the company receives a unique Invoice Reference Number (IRN) and a QR code from the portal. These details must be printed or displayed on their invoices.

• In SAP B1/ERP, LogiTax GST E-Invoicing solution simplifies the process of preparing sales invoices by automatically generating invoice data according to the requirements of the Invoice Registration Portal (IRP). 
• This includes mandatory fields such as the GSTIN numbers of the supplier and buyer, invoice number, invoice date, invoice type, state, and item-level details.
• Submit the invoice data to the IRP.
• Once the data is sent, the IRP validates it and generates the following information.
• Unique Invoice Reference Number (IRN) & QR code of the E-Invoice provided to the taxpayer.
• Digitally signed E-Invoice, is sent to both the taxpayer and the buyer.
• LogiTax GST E-Invoicing solution includes features that allow for easy updating of the IRN and QR code on the invoice data, ensuring compliance with the E-Invoicing requirements.

Once an E-Invoice has been generated, its values cannot be modified. Within 24 hours of the invoice generation, you may cancel it and generate a new invoice with updated values.

E-invoice, doesn’t mean that it applies to only Invoices. It also naturally applies to Debit notes, Credit notes in respect to B2B, SEZ, and Export transactions.

• All big enterprises with a revenue of more than ₹500 crore were included in the first phase of E-invoicing, which began on October 1st, 2020.
• Businesses having a revenue of ₹100 crores were a part of the second phase.
• Those with a turnover of 50 crores were included in the third phase beginning April 1st, 2021.
• In 2022, the government decided to include small and medium-sized firms as well, alerting them that the rules of E-invoicing also apply to organizations with a turnover of 20 crores and 10 crores, respectively, as of April 1st, 2022 and October 1st, 2022.
• E-invoicing will be essential for enterprises having an annual aggregate revenue of more than Rs. 5 crores from 2017-18 beginning on August 1, 2023.