E-invoicing has been made applicable w.e.f. 01st April 2022 to entities having turnover exceeding INR 20 crore in any financial year from 2017-18 onwards.
SALIENT FEATURES:
1. The taxpayers will continue to generate their invoices as they are now in their own accounting/billing software, however the same after generation will now have to be reported to “Invoice Registration Portal”, wherein a unique IRN (Invoice Reference Number) shall be generated.
2. E-invoicing is applicable to the following transactions: a) Supplies to registered persons (i.e., B2B supplies), b) Supplies to SEZs (with/without payment of tax), c) Exports (with/without payment of tax), and d) Deemed exports.
3. It is not applicable to nil-rated or wholly-exempt supplies as in these cases, only a bill of supply is issued and not a tax invoice. Currently, e-invoicing for B2C transactions is only applicable in case turnover of the entity exceeds INR 500 cr, thus not relevant to entities not crossing that threshold.
4. Applicable to credit notes or debit notes issued under GST as well in addition to tax invoices. Thus e-invoice will have to be created for tax invoices, credit and debit notes issued by the taxpayer.
5. E-Invoice – Amendment: All the amendments to the e-invoice will be done on the GST portal only. JSON sent for the generation of e-invoice cannot be amended. IRN cannot be amended.
6. E-Invoice Cancellation: Can be done only within 24 hours of generation
7. The link for accessing the e-invoice portal is https://einvoice1.gst.gov.in/, USER-ID can be created here to start the e-invoice generation process.
PROCESS/SEQUENCE:
1. Create a normal tax invoice in your existing billing software
2. Create E-Invoice
3. Generate E-way Bill