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All about E-Invoicing under gst- Definition & Benefits- LogiTax

Starting August 1st, 2023,

E-Invoicing is mandatory for businesses with a turnover of INR 5 crore or more

Now generate E-Invoices from your ERP with just 1-click! It
can integrate with your accounting and ERP platforms via
ready-made plugins

Experience LogiTax Today
E-Invoicing is mandatory for businesses with a turnover of INR 5 crore or more

Starting August 1st, 2023,

E-Invoicing is mandatory for businesses with a turnover of INR 5 crore or more

Now generate E-Invoices from your ERP with just 1-click! It can integrate with your accounting and ERP platforms via ready-made plugins

E-Invoicing is mandatory for businesses with a turnover of INR 5 crore or more
Experience LogiTax Today

Best E-Invoicing Software For Tally, SAP and ERP

Best E-Invoicing Software For Tally, SAP and ERP

Best E-Invoicing Software image 1

Faster and Enriched API

LogiTax Invoice software offers seamless API integration with your ERP systems, ensuring smooth data exchange and synchronization of invoice data.

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Real-Time Reporting

With real-time reporting of invoices, businesses will have accurate and up-to-date records of their transactions, which will also help during tax audits.

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Data Mapping and Validation

LogiTax Invoice software intelligently matches fields and performs validation checks for accurate and compliant data transfer.

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Seamless Workflow

With Logitax, businesses can maintain their existing workflow within Tally, SAP, or ERP systems while leveraging the benefits of LogiTax E-Invoicing system.

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Automated Data Synchronization

This ensures that all relevant invoice data seamlessly flows between the systems without any manual intervention.

 How does LogiTax help with E-Invoice integration?

LogiTax A One-Stop Solution for all your E-Invoicing Needs

LogiTax A One-Stop Solution image 1

Auth Key

It tracks and manages the generation and renewals for every API request that originates from ERP.

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Simplified JSON

It has designed a simplified JSON schema where state codes, address lengths, NULL blocks etc are handled internally.

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Audit Logs

It maintains the request JSONs, response JSONs, audit trails with multi year E-invoice reports accessible on the LogiTax portal.

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Enriched Response

It includes decrypted QR code, error descriptions, E-Way Bill detailed & summary printouts, and email notifications to users.

Start Your Integration Now

 How does LogiTax help with E-Invoice integration?

LogiTax A One-Stop Solution for all your E-Invoicing Needs

LogiTax A One-Stop Solution image 1

Auth Key

It tracks and manages the generation and renewals for every API request that originates from ERP.

LogiTax A One-Stop Solution image 2

Simplified JSON

It has designed a simplified JSON schema where state codes, address lengths, NULL blocks etc are handled internally.

LogiTax A One-Stop Solution image 3

Audit Logs

It maintains the request JSONs, response JSONs, audit trails with multi year E-invoice reports accessible on the LogiTax portal.

LogiTax A One-Stop Solution image 4

Enriched Response

It includes decrypted QR code, error descriptions, E-Way Bill detailed & summary printouts, and email notifications to users.

How does LogiTax Invoice software benefit
SMEs (Small Medium Businesses)?

  1. E-Invoicing allows SMEs to quickly generate and send invoices, eliminating postal delays.
  2. E-invoices build customer trust and boost business credibility.
  3. SME compliance is eased as E-invoices automatically populate
    GSTR-1, saving manual effort.
  4. Real-time invoice reporting ensures accurate transaction records for smoother audits.

Discover the benefits of LogiTax E-Invoicing solution

Effortless E-Invoicing Starts Here!
how logitax benefits SMEs

How does LogiTax Invoice software benefit SMEs

how logitax benefits SMEs
  1. E-Invoicing allows SMEs to quickly generate and send invoices, eliminating postal delays.
  2. E-invoices build customer trust and boost business credibility.
  3. SME compliance is eased as E-invoices automatically populate GSTR-1, saving manual effort.
  4. Real-time invoice reporting ensures accurate transaction records for smoother audits.

Discover the benefits of LogiTax E-Invoicing solution

Effortless E-Invoicing Starts Here!

Benefits of E Invoicing under GST

Benefits of E Invoicing under GST
  • Reduces your dependency for non-productive work through E-Invoice automation.
  • Minimizes risks & errors by automating invoice generation and validation.
  • Saving significant manual effort in GSTR-1 preparation by immediately converting E-Invoices to GSTR-1.
  • Maintains the request JSONs, response JSONs, audit trails with multi year E-invoice reports accessible on the LogiTax portal.
  • Offer an IRN offline utility feature to help generate IRN during downtime.
  • With bulk and excel upload functionality, increased invoice volumes can be handled efficiently.

Discover the benefits of LogiTax E-Invoicing solution

Ready for Seamless Invoicing?

Benefits of E Invoicing under GST

Benefits of E Invoicing under GST
  • Reduces your dependency for non-productive work through E-Invoice automation.
  • Minimizes risks & errors by automating invoice generation and validation.
  • Saving significant manual effort in GSTR-1 preparation by immediately converting E-Invoices to GSTR-1.
  • Maintains the request JSONs, response JSONs, audit trails with multi year E-invoice reports accessible on the LogiTax portal.
  • Offer an IRN offline utility feature to help generate IRN during downtime.
  • With bulk and excel upload functionality, increased invoice volumes can be handled efficiently.

Discover the benefits of LogiTax E-Invoicing solution

Ready for Seamless Invoicing?

E-Invoice Generation in a single click

Best online Invoicing software is here!

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Seamless Integration & Generation

LogiTax integrates with accounting software/ERPs for seamless data transfer, eliminating manual data entry. Generates E-Invoice & E-Way Bill in 3 seconds.

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Real-Time Validation

It Validates invoice data for accuracy, completeness, and tax compliance, ensuring seamless generation of E-invoices.

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Audit Trail

Provides 8 Years of Data history of all invoice-related activities, facilitating audits and compliance. Enables traceability and accountability in case of disputes or discrepancies.

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Past Period E-Invoice Generation

Ensures continuity and consistency in invoice generation, even for past periods. Facilitates the transition from manual invoicing to E-invoicing seamlessly.

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Single-Click Reconciliation

Significantly minimizes the time and effort  needed for manual reconciliation tasks. Identifies non-compliances through a single-click.

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E-mail notifications

LogiTax provides real-time updates for E-invoices and E-Way-Bills generation, ensuring effective communication. Users can customize the email with their logo on the E-Invoice.

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LogiTax Watcher

No API code, JSON schema, validations are needed. Enable E-Invoicing within a Day using LogiTax Watcher.

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Real-Time Reconciliation

Sales Register & E-Invoice Reconciliation, reduces the time and effort required for manual reconciliation processes. It helps to get all the data for mismatched invoices.

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IRN Offline Utility

During the downtime the user won't be able to access the LogiTax Portal. But if the user still needs to generate IRN they can do that using the IRN Offline Utility feature.

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Failed IRN Generation Alerts

These error messages provide insights into the reason for the failure, allowing businesses to rectify the issues and ensure successful generation.

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Our solution caters to various businesses and professionals

CA Firms

Get advanced functionalities for bulk return filing and reconciliation. It allows them to file GST returns for multiple clients or units simultaneously, saving time and effort.

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ERP Partners

LogiTax solution seamlessly integrates with various ERP systems, streamlining data transfer and reducing manual data entry errors

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SMEs

With built-in error checks and validation reducing the chances of filing incorrect GST returns. Beneficial for SMEs, to avoid penalties and audits.

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Corporates

Get advanced reporting capabilities and customizable dashboards that provide a clear overview of GST compliance status and financial data.

Explore LogiTax Now!

Revolutionize Your Invoicing with Our E-Invoicing Solution

Don't miss out on streamlining your invoicing workflow – click here to schedule a demo now!

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FAQs

Basics of E-Invoicing

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.

The process of E-Invoicing requires a system/utility like Invoice Registration Portal (IRP) for taxpayers to report E-Invoice data in JSON format to IRP and receive signed E-Invoices in JSON format.

  • 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.

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. E-Invoice reporting ensures the government validation on the accuracy of the invoice according to the GST law and also stops the duplication of invoices being generated.

A. Invoices B. Credit Notes (CDN) C. Debit Notes (DBN)

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).

IRN generation

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).

If the invoice does not include an IRN, it will be considered invalid. As a result, it is advised to upload invoices to the IRP in real time.

This IRN is a one-of-a-kind number in the GST system, regardless of tax payer, fiscal year, or document type. When the taxpayer uploads the invoice data, the E-Invoice system generates an IRN.

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.

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.

The limit for IRN generation is 7 days. The 7 Days restriction is applicable to all documents (Invoice, Credit Note, Debit Note) for which IRN is to be generated.

E-Invoice Applicability

Import transactions are not eligible for E-Invoice.

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

E-Invoicing is only applicable to B2B invoices, not B2C invoices. As a result, B2B invoices require both e-way bills and e-invoices, but B2C invoices just require e-way bills (where applicable).

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.

E-invoice does not apply to new enterprises. It is only based on the previous year’s aggregate turnover.

Assume, for example, that a company's annual revenue did not surpass 5 crores in any year up to March 31, 2023. However, if its revenue exceeds 5 crores in September 2023, would it be subject to E-Invoice beginning in October 2023? The answer is no; for the full fiscal year 2023-24, only turnover up to March 31, 2023 (prior fiscal years) is to be included. E-invoicing will be applicable to businesses with a turnover of more than 5 crores in any of the fiscal years beginning with FY 2017-18 and ending with FY 2022-23.

 E-Invoice Validity

Anyone can validate an e-invoice's credibility by uploading a signed JSON file or a signed QR code to the e-invoice system. The option 'Verify Signed Invoice' should be chosen under the Search option, and the signed JSON file can be submitted and confirmed.

The normal rule is 30 days from the invoice date. You may, however, negotiate this with your consumer and either shorten or lengthen it beyond 30 days. The invoice, however, should explicitly mention the due date.

Advantages of E-Invoicing

  1. ITC reconciliation is made easier by auto-reporting invoices into the GST return.
  2. EWB generation simultaneously
  3. Eliminates fake invoices
  4. Reconciliation problems are eliminated
  5. Standardization and the elimination of data entry mistakes
  6. Documents are tax compliant in real time.
  7. Reduction of processing costs
  8. Improve payment cycles
  9. Improve overall corporate efficiency and make conducting business easier.

E-invoicing improves interoperability and decreases data entry errors. It also provides for real-time tracking of the supplier's invoices.

E-Invoicing is useful in helping organizations in streamlining their invoice processing cycles by lowering the number of man-hours necessary for invoice processing, approval, tracking, and chasing invoices, as well as human errors.

Eligible Input Tax Credit (ITC) refers to the GST you can claim on purchases used for taxable supplies. Ineligible ITC is GST on purchases not eligible for claiming, such as those used for non-business purposes or for exempt supplies.

E-Invoice Cancellation

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 Print & QR code

QR codes are required in all E-Invoices created by applicable companies. The E-Invoicing system aims to standardize invoice reporting.

Yes. Apart from the IRN-related QR code, the provider is allowed to put any other QR code that is necessary for business purposes or is otherwise prescribed by any other regulatory obligation. In such circumstances, the QR Codes must be properly labeled so that they can be easily differentiated.

Yes. The E-Invoice can be printed.

E-Invoice Generation

If this is your first time using the E-Invoice portal, go to the registration menu and select 'e-Invoice Enablement'. Enter the company's GSTIN and complete the OTP verification. Submit the yearly turnover details with the relevant fiscal year. E-Invoice is available to view on NIC or any other platform for only 2 days from the generation date. Then it is available in the GSTIN portal.

 E-Invoice Integration with ERP

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.

  1. 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). 
  2. 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. 
  3. Submit the invoice data to the IRP. 
  4. Once the data is sent, the IRP validates it and generates the following information. 
  5. Unique Invoice Reference Number (IRN) & QR code of the E-Invoice provided to the taxpayer. 
  6. Digitally signed E-Invoice, is sent to both the taxpayer and the buyer. 
  7. 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. 

2-Factor Authentication

To strengthen the security of the E-Way Bill and E-Invoice systems, NIC is implementing a two-factor authentication mechanism. Alongside the traditional username and password, users will also be required to authenticate their login by entering a One-Time Password (OTP).

As of July 15, 2023, the use of two-factor authentication (2FA) becomes mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding Rs 100 crore when accessing the E-Way Bill and E-Invoice system.

To enable two-factor authentication (2FA) in the E-Way Bill System:
  1. Navigate to the Main Menu and select the "2 Factor Authentication" option.
  2. Follow the registration process to confirm your registration. 
  3. After registration, when logging in, the system will prompt you to enter an OTP along with your username and password. 
  4. The OTP authentication is linked to individual user accounts. The sub-users associated with a GSTIN will have separate authentication based on their registered mobile number in the E-Way Bill/E-Invoice System. 
  5. It's important to note that once you register for 2FA, it will be applicable for both the E-Way bill and E-Invoice system.

Limit for Reporting of Invoices

The GST Authority has introduced a time limit of 30 days for reporting invoices from the date of the invoice. This rule applies to taxpayers with an Aggregate Annual Turnover (AATO) equal to or greater than 100 crores.

Taxpayers in the specified category will not be allowed to report invoices older than 30 days from the date of reporting. This restriction applies to all document types for which Invoice Reference Numbers (IRNs) are generated.

Yes, this rule also applies to Credit and Debit notes. They must be reported within 30 days of their issue from the date of issue.

This validation will be in effect from November 1, 2023.

HSN Code Requirements for E-Invoices and E-Way Bills

As per Notification No. 78/2020 dated October 15, 2020, taxpayers with an Aggregate Annual Turnover (AATO) exceeding Rs 5 Crore are required to include a minimum of 6-digit HSN codes

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