E-invoices replace GST Invoices: E-Invoicing Benefits, Implementation and How does it works?

E Invoice

E-invoicing is considered to be more of a business restructuring than a tax restructuring. In the initial phases, the new practice is applied only to certain taxpayers having invoice value or turnover denominations exceeding certain specified limits. Slowly and steadily, rest of the taxpayers will also fall under the scrutiny of E-invoicing in a subsequent fashion. The implementation of GST is going to eradicate to a large extend the occurrence of errors which directly results in hassle-free returns. 

Here is a brief description of everything that you need to know about E-invoicing…

When will E-Invoicing Come into Effect?

The 37th GST council on September 20, 2019 has sanctioned the incorporation of E-invoicing (Electronic-invoicing) in the B2B transaction system starting from January 1, 2020.

What Modifications will E-invoicing initiate?

After putting into practice the new system of E-invoicing, all the sales and purchase invoices shall be replaced. These invoices will assume the new ‘electronic’ format through the government screened E-invoice PAN- India.

How will E-Invoicing Control Tax Evasion?

The GST council and the Government of India believe that this can bottleneck tax evasion since there is real-time record of every GST returns with the E-invoice details. There will be less possibility for tax avoidance as invoices get generated prior to transaction. Since all invoices are generated through GST portal, only those input tax credit that are genuine can be claimed. This implies that GSTN can track every fake tax credit claims.

How Does E-invoicing Work?

In this new method of E-invoicing, there will be standard template of GST invoice. The GST network will generate a unique invoice number, also called unique Invoice Reference Number (IRN). The IRN is calculated based on an organization’s GSTIN i.e. GST registration number.

In order to smoothly execute further E-invoicing activities, the government has nominated registrars to preside the same. The registrars will be responsible for issuing the E-invoice for the taxpayer who will either be a seller or a buyer. Any registered taxpayer can raise the request to the registrar through online, API, SMS, mobile app or even offline tool. This will hence be a proof to the registrar regarding the area coverage of the registered tax person.

By the introduction of online method like E-invoicing, the India Government believes that there will be an enhancement in digital payments through QR codes. The government mandates the use of a QR code generated in the E-invoice registration portal. This QR code can be digitally validated and signed by the appointed registrar, which will generate another QR code. This QR code can be printed by the registrar and taken as proof by the taxpayer to be sent as an invoice number.

Who will be Liable to Do E-Invoicing?

While not every business need to come under GST E-invoicing, this factor is subjected to specified turnover limits of companies. If the turnover of companies goes beyond a set limit, then there arises the necessity of registering and implementing the GST E-invoicing for that particular business.

What are the benefits of E-invoicing?

• Invoicing in the electronic format reduces the probability of error as against manually entering the details
• There is ease of reconciliation between invoices and returns
• Facilitate real-time tracking of invoices of supplier and hence speedy input tax credit
• Automation through digital mode of tax filing procedures
• Tax authorities can inspect the data in real-time thus reducing any misrepresentations from the side of the taxpayers

The induction of E-invoicing in the system eases the task of everyone with routes of everyone and everything being part of the system. E-invoicing is sure to be a game-changer when it comes to future GST practices of the country!

Other Blogs

Seven Major changes in Income Tax Rules, in effect from September 1, 2019.

Government has introduced 7 new changes in the Incone Tax Laws that has come into effect from September 1, 2019


SoP for Filing Kerala Flood Cess Return and payment

For filing return and payment of Kerala Flood Cess, every taxpayer has to register into the Kerala Flood Cess Portal available on the website of Kerala State Goods and Services Tax Department.


Thirty seventh GST Council Meeting - Key Highlights

The 37th GST council has been held in Panaji on September 20, 2019.The meeting wrapped up with several decisions ranging from relaxations in annual return filing, rate revisions, deferment of new GST


State Government to Levy Kerala Flood Cess

Kerala is still in the path of repossession after the trauma it got from the floods last year.


How to Calculate Kerala Flood Cess ?

The government of Kerala has been given the green flag for levying 1% Kerala Flood Cess on goods and services.


Highlights of Union Budget 2019

Check out the highligts of India Union Budget 2019 presented by Finance Minister Nirmala Sitharaman


Central Government issues yet another amendment on Kerala Flood Cess

The latest amendment that is merged in Kerala Flood Cess is described below.


What is GST?

The Goods and Service Tax (GST) is an indirect/consumption tax levied on the supply of goods. Currently, GST is divided into 5 tax slabs for collection of tax- 0%, 5%, 12%, 18% and 28%.The Goods & Service Tax came into effect on July 1, 2017 as per the 101st Amendment of the Constitution of India by the Indian Government.


GST to Hire E-invoicing

E-invoicing is simply a form of electronic billing and it allows easy monitoring of transaction documents.


GSTN Releases the New Return Prototype

GSTN has come up with a web-based prototype which is an interactive demo version of the "Offline Tools Of New Return"


GSTR 9 : Annual Return Filing, Eligibility, Format & Rules

Last date to file GSTR-9 is 30 November 2019.GSTR-9 is an annual return to be filed once in a year by the registered taxpayers under GST.


Home Loan Benefits - Income Tax Deductions and Tax exemption on Housing Loan.

Details about the Tax benefit on Housing loan,Tax rebate on Home loan, Home loan interest deduction. Know more about Income tax exemption and home loan income tax benefit.


What is Input Tax Credit under GST - How to Claim and Calculate it?

Input Tax Credit(ITC) reduces taxes paid on inputs from taxes that are to be paid on output. Input Credit Mechanism is available to you when you are covered under the GST Act.


New Simplified GST Return Forms - Sahaj & Sugam

Sahaj & Sugam new GST Return Forms where announced by GST Council to ease the filing for registered GST taxpayers.


Income Tax System In India - Complete Guide, Types, Rules, IT Returns, Slabs, e Filing

Income Tax is a tax you pay directly to the government based on your income or profit. Learn more about Income Tax slabs, filing process, deductions, refund, rules, calculations, TDS,Income Tax return


Working of E-Invoicing under GST

E-invoicing, new GST invoicing format is starting from 1st January 2020 on voluntary basis.In this system GST network will generate a unique invoice number, also called unique Invoice Reference Number


What if You DON'T file your Returns by December 31, 2019?

The final date for Income Tax Return filing is December 31, 2019. Every person whose total income in the FY 2019 exceeds Rs.2.5lakh are liable to file ITR.


Key Highlights of 38th GST Council Meeting - 28% Tax on Lotteries- GSTR 9 & 9C Deadlines Extended.

Highlights of GST Council Meet - due date for GSTR-9 and GSTR-9C for the FY 2017-18 has been extended and 28% Tax on all lotteries. Find more updates from the 38th GST Council Meeting.


What is Pre-budget Memorandum?

What is Pre-budget Memorandum? Who created Pre-budget Memorandum? Major suggestions in 2020 Pre-budget Memorandum.


GST Revenue Collection

The GST collection has crossed 1 Lakh Cr for the second consecutive month. This indicates that the consumption has boosted despite all the initial chaos about GST.


What is Reverse Charge Mechanism?

Reverse Charge Mechanism(RCM) in GST means that the receiver of the goods or services is liable to pay the tax and not the supplier.


What is the income tax slab for FY 2020 - 21?

Find out the new Income Tax slab tax rates in India for FY 2020-21


Employee State Insurance (ESI) - Here is what you should know...

This article familiarizes you about Employee State Insurance (ESI) Scheme and its eligibility, applicability and benefits for employees.


Everything about GST Composition Scheme

Is GST Composition Scheme beneficial? Have a look on GST Composition Scheme in detail with its benefits, conditions, tax rates etc.


39th GST Council Meeting

The 39th GST Council Meeting has been held on March 14, 2020 at New Delhi. Here's all you need to know.


IGST: What to Know & Its Overview

GST has many tax subsets alongside rules and sections to follow. What IGST is and what are the associated elements of it are illustrated here...


ITR filing deadline for FY19 extended till 30 June 2020

Income Tax & GST Return Extended till June 30 owing to COVID-19 Outbreak!


Corona Virus: Rs 1.7 lakh cr economic relief package announced by Finance Minister Nirmala Sitharaman

FM Sitharaman is announcing the most-awaited economic relief package amid the Covid-19 pandemic.


Online Income Tax Challans

Income Tax Payment with Online Challans. Find about how to pay advance tax, self assessment tax online.


A Complete Guide On Job Work Under GST India

The GST Act makes special provisions with regard to removal of goods for job-work and receiving back the goods after processing from the job-worker without the payment of GST.


What is GST Return?

Complete guide about GST Returns - The different types of GST returns, who should file these returns and when to file GST returns. Read now


What is RBI Moratorium?

The moratorium means that the borrowers would not have to pay the loan EMI installments during the moratorium period. Read to know more about the facts of RBI's moratorium.


Highlights of 40th GST Council Meet

Highlights of 40th GST Council Meeting dated 12th June 2020.


What is GST Demand & Recovery?

As per the provisions of recovery of tax in GST, if the amount payable by a taxable person, remains unpaid, even after 3 months from the date of issuing the order for demand of tax, then the recovery of tax under GST will be initiated.


GST Return due dates

GST return due dates and interest related queries have been extended and solved respectively through the various circulars and notifications published by the government.


Types of GST

The GST types are determined based on the province in which the goods and/or services are exchanged and transactions made. The types of GST include: • Central Goods & Services Tax (CGST) • State Goods & Services Tax (SGST) • Union Territory GST (UTGST) • Integrated GST (ITGST)


What is GST Framework?

GST framework is a design made by the India Government that would eliminate most of the indirect taxes like VAT, customs duty, excise duty, CST, service tax, entertainment tax, and bring it all under a single tax structure called GST.


GST Classification

GST classification is the diverse broad categories into which goods and services are categorized, taking into consideration certain specific set of factors.


GST Registration

GST Registration is that part of the GST regime in which every business with turnover of Rs.40 Lakhs should register as a normal tax payer. The threshold turnover limit for GST registration for NE and hill states is Rs.10 lakh.