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The term 'e-Invoicing' or 'electronic invoicing' refers to a system whereby B2B invoices and certain other documents are electronically authenticated by GSTN for further use on the common GST portal. The GST Council, in its 35th meeting, resolved to implement an e-Invoicing system, initially targeting specific categories of persons, primarily large enterprises. Subsequently, the system was expanded to include mid-sized and small businesses.
E-invoicing, short for electronic invoicing, is a streamlined system where Business-to-Business (B2B) invoices and select documents undergo electronic authentication by the GST Network (GSTN) for subsequent utilization on the shared GST portal.
The decision to implement e-invoicing was made during the 35th meeting of the GST Council, primarily targeting specific categories of entities, predominantly large enterprises. Subsequently, its scope has been broadened to encompass mid-sized and small businesses.
Importantly, e-invoicing doesn’t involve the direct generation of invoices on the GST portal. Instead, it necessitates the submission of pre-existing standard invoices on a unified e-invoice portal. This process facilitates automated multi-purpose reporting with a one-time input of invoice details. The Central Board of Indirect Taxes and Customs (CBIC) outlined the specific portals for e-invoice preparation through Notification No.69/2019 – Central Tax.
Within the electronic invoicing framework, each invoice is assigned a unique identification number by the Invoice Registration Portal (IRP), managed by GSTN. The inaugural IRP, launched by the National Informatics Centre, can be accessed at einvoice1.gst.gov.in.
Crucially, the IRP ensures the seamless transmission of invoice information to both the GST portal and the e-way bill portal in real-time. Consequently, this eliminates the need for manual data entry when filing GSTR-1 returns and generating part-A of e-way bills, as the IRP directly conveys the information to the GST portal.
Documents:
Transactions:
E-invoicing is applicable to the following transactions:
As of April 30th, 2023, the GST systems and GST law did not impose any specific time limit for the generation of e-invoices. Starting from May 1st, 2023, onwards, businesses with an Annual Aggregate Turnover (AATO) equal to or exceeding INR 100 crore are mandated to generate e-invoices for tax invoices and credit-debit notes within 7 days of the invoice date. Failure to comply with this timeframe will render such invoices and CDNs non-compliant.
For other applicable taxpayers, there is no predefined time limit for e-invoice generation. However, it is recommended that these taxpayers generate e-invoices on or after the invoice/CDN date, ideally a week prior to filing GSTR-1 returns. This proactive approach allows for a smooth integration, as it takes T+3 days for the details of e-invoices to automatically populate into GSTR-1.
A noteworthy update occurred on May 6th, 2023, when the department deferred the 7-day time limit for reporting old e-invoices on the Invoice Registration Portal (IRP) portals by three months. The new implementation date for this extension is yet to be announced by the department.
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