E-Invoice

Starting 1st October 2020, the GST Council has approved phased introduction of ‘E-invoicing’ or ‘Electronic Invoicing’ to report Business to Business (B2B) invoices to GST System.

E-invoicing meaning

e-Invoice similar to Electronic Way Bill is a document in electronic format that is to be generated by Taxpayers and uploaded to notified Government Portal.

CGST Rule 48(4) and 48(5) together define that only an e-Invoice is a valid Tax Invoice.

Who needs to generate e-Invoices?

Taxpayers with aggregate turnover in a Financial Year exceeding Rs. 100 Crores

Where should one generate e-Invoice?

You should generate your e-Invoice at www.einvoice1.gst.gov.in. The E-Invoice Portal, or Invoice Reporting Portal (IRP) will not provide facility to punch in invoices. Taxpayers will have to integrate e-invoicing capability in their ERP.

GSTZen's e-invoicing software integrates with ERPs such as SAP, Microsoft Dynamics and Tally to help you generate e-Invoices in a smooth manner.

When will e-Invoicing begin?

Govt plans to launch e-Invoice Portal on voluntary basis on 1st January, 2020. e-Invoicing is required from 1st October, 2020.

Which transactions require e-Invoice?

  1. All B2B Invoices have to be E-Invoices.
  2. All B2C Invoices issued by Taxpayers with aggregate turnover in a Financial Year exceeding Rs. 500 Crores have to contain a Payment Quick Response Code (QR Code). However, these are not e-invoices.

GSTZen has written a variety of articles that will help you better understand E-Invoicing concept and it's terms and conditions. Here are the list of GSTZen's articles about E-invoicing: