E-invoice has been introduced to curb tax evasions and reduce discrepancies in various GST returns due to manual invoices. ‘E-invoice’ or ‘electronic invoice’ is a B2B invoice that is in a format specified by the GST Network (GSTN) and authenticated on the GST Portal, through which an Invoice Registration Number (IRN) is generated. Such invoices are used to facilitate the transportation of goods and services from one place to another.
The CBIC has notified various common portals to prepare e-invoices via Notification No. 69/2019 – Central Tax.
Who may register on the Invoice Registration Portal (IRP) for GST?
E-invoicing was made applicable to the following category of registered persons:
- From 1st October 2020 – Applicable to all businesses whose aggregate turnover has exceeded Rs. 500 crores during any preceding financial years between 2017-18 to 2019-20.
- Starting 1st January 2021 – Applicable to all businesses whose turnover exceeds Rs. 100 crores in any of the financial years from FY 2017-18.
- From 1st April 2021 – Applicable to businesses whose turnover is more than Rs. 50 crores.
However, as per notification 13/2020 – Central Tax, the following categories of registered persons is exempted from e-invoicing:
- A banking company, a non-banking finance company (NBFC), and a financial institution.
- An insurer.
- A taxpayer engaged in supplying passenger transportation service.
- A goods transport agency (GTA) supplying services.
- A registered person engaged in supplying services by way of admission to the exhibition of cinematographic films on the multiplex screen.
- An SEZ unit, which has been excluded via CBIC Notification No. 61/2020 – Central Tax.
- A government department and Local Authority, which has been excluded via CBIC Notification No. 23/2021 – Central Tax.
Steps to register on the IRP
Currently, there is a single portal for e-invoice – https://einvoice1-trial.nic.in/Home/ The steps to register on this site are as follows:
- Go to the IRP Portal
Case A – In case the taxpayer is already registered on the e-way bill portal,
Use the same credentials to log in to the e-way bill portal and register the invoice.
Case B – In case the taxpayer is not registered on the e-way bill portal,
The taxpayer can get registered on the portal with their GSTIN and the mobile number registered with the GST system.
- Go to the Registration tab and select ‘Portal Login’.
- In the e-invoice registration form, input the GSTIN, enter the captcha as shown and press ‘Go’.
- In case the provided GSTIN is already registered, the following message is displayed:‘3027 – You are already registered Pl. use already created username and password to log in to the system. If you have forgotten username or password, then use the ‘Forgot Username’ or ‘Forgot Password’ options to get the username and password!!”’
- However, if e-invoicing is not enabled, the following details shall be displayed due to GSTIN:
- Applicant Name
- Trade Name
- Address Line 1 and Line 2,
- Registered e-mail ID, and
- Registered Mobile Number
A checkbox shall appear. This checkbox needs to be enabled in case the aggregate turnover of that particular GSTIN is over Rs. 50 crores.
- After the above step, click ‘Send OTP’.
- The OTP shall be sent to the registered mobile number.
- The OTP received shall be used to enable e-invoicing.
- After receiving the OTP, the taxpayer has to choose a username and password for future log-ins.
What are the other modes of registering invoices with IRP?
- Web-based registration – Logging onto the IRP Portal and generate the e-invoice by entering all the required data.
- GSP-based registration – GSP stands for GST Suvidha provider. A GSP is an authorized intermediary for taxpayers to access GST portal services.
- Offline tool-based registration – This can be done by filling the details with invoices into an Excel-based offline tool and converting the same into a JSON file. This shall then be uploaded on the IRP Portal to generate an IRN.
- API-based registration – Application Programming Interface (API) is software that acts as an intermediary. With API integration, two or more applications can interact with each other. A third-party software needs to be registered with the e-invoice system. The invoices can be uploaded into the software to generate an IRN. Various software is available for this purpose, like the one provided by WeP digital e-invoice software.
The WeP digital e-invoice software integrates the process of e-invoice with ERP and makes the transition very seamless.
Some benefits of using WeP digital e-invoice software are:
- Getting support for manual, SFTP, and ERP integrated e-invoice solutions.
- Covering both ASP and GSP models of services.
- Tie up with specialized integration partners for SAP, Oracle, etc.
- A strong support base for in-house implementation of e-invoicing.
- Tight information security policies.
There are multiple uses and benefits to installing the WeP digital e-invoice software:
- A distinct and enhanced summary dashboard is available.
- A bulk upload of e-invoices is easily processed through the Excel template.
- Uploading the e-invoices takes three easy steps: Validate, upload, and generate.
- Cancellation of e-invoice is possible in a few easy steps.
- Creation and cancellation of an IRN-based e-way bill.
- An option to download the PDF and print the e-invoice.
- A well-trained support team.
- A simple exception handling process.
An easy, convenient, and trusted software that will help ease all the problems related to e-invoicing, simply Click Here and start your free trial or request a demo.
Since its introduction in 2017, GST has been going through frequent updates and changes. This fast-paced evolution of GST has caused upheaval for taxpayers as they scramble to catch up to the frequent changes. Introducing e-invoices reduces the confusion surrounding the details in such invoices, brings about uniformity in the format, and reduces the efforts to reconcile various returns.
Though a significant transition in a country like India, E-invoicing will pave the way for better adherence to the GST rules, lesser discrepancies and errors in GST returns, and protect the Revenue department’s interest.