Things you should know about E- Invoicing for GST

1. GST council introduced ‘E-invoicing’ or ‘electronic invoicing’ in 37th council meeting held on 20th September 2019.

2. GST Council proposes to introduce the E- Invoice in phased manner starting from 1st January 2020 on Voluntary Basis.

3. E- Invoice system contains two important parts-

  1. Generation of invoices in standard format.
  2. Reporting of invoices to a central system.

4. The GST portal or Invoice Registration Portal (IRP) will NOT provide facility to generate invoices. IRP is only to report the invoice data. Businesses will continue to generate e-invoices on their internal systems, whether ERP or their accounting / billing systems or any other application.

5. Once Taxpayer uploads invoice on Invoice Generation portal (IRP) of GST, it will generate Unique Invoice Reference Number (IRN) and digitally sign the invoice and generates the QR code.

6. GST system auto populate invoice data along with IRN to the GST Annx – I of the seller and Annx – II of buyer as well as to the E-way bill system.

7. Type of document to be reported to GST System –

  1. Invoice by supplier.
  2. Credit notes by supplier.
  3. Debit notes by supplier.
  4. Any other document (required to be reported by law).