What is E-invoicing?

E-invoicing stands for electronic invoicing, exchanging of an invoice document between a supplier and a buyer in an electronic form. It is a very traditional and common practice in B2B transactions.

Types of E-invoicing in India:

  • Invoice data issued in Electronic Data Interchange (EDI) or XML formats.
  • Invoice data issued using standard internet-based web forms.

The Government of India rolled out e-invoicing on 01 October 2020, deferred due to Covid-19 from the original plan of 01 April 2020.

Businesses with aggregate turnover of more than ₹ 500 CR in the previous financial year are mandatorily required to comply with e-invoicing in the first phase starting 01 October 2020 and businesses having a turnover of INR 100 crore or more with effect from 01 April 2020.


Information required to generate an E-Invoice in India for GST:

E-invoice can be generated through any software that supports the government prescribed e-invoicing format, which should include the following information

  • Supplier GSTIN, invoice number
  • The financial year in the format YYYY-YY
  • Details of supplier & consignee
  • Type of supply
    • Is it to a B2B or B2C
    • Does it attract RCM
    • Does it attract TDS/TCS
  • Is it an export, supply made to SEZ or deemed export
  • Details of supply
  • Authorisation by the designated authority


Benefits of e-Invoicing compliance in India:

The introduction of e-Invoicing will reduce GST evasion and fake invoicing.

  • It is a real-time tracking of invoices prepared by a supplier and helps secure GST returns by authenticating the taxpayer on the GST Portal.
  • E-invoice, once uploaded on the GST portal for authentication, will be shared with the buyer through e-mail to the e-mail address mentioned on the e-invoice, thereby reducing the scope for fake invoices and making it easier for ITC claims.
  • Invoice mismatches and GST issues, which is tedious to resolve, will be minimised significantly.

The question arises whether a taxpayer can amend an e-invoice, to which the answer is yes, but only through the GSTN portal. However, cancellations may not be easy. 


E-invoicing Compliance in India – Things to remember:

  • An invoice is said to be an “E-invoice” only when reported and authenticated on the GSTN portal
  • E-invoice can contain a maximum of 100 line items only
  • E-invoice will be available on the Invoice Registration Portal (IRP) for only 24 hours but an entire financial year on the GSTN portal.

Businesses can now look forward to more efficient and faster GST returns and reconciliation, thanks to E-invoicing!

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