113 Frequently Asked Questions on GST e-invoice and IRN System
A. E-invoice – Basics:
- What is e-invoicing?
Answer : ‘e-invoicing’ means the invoice shall be prepared after obtaining an Invoice Reference Number (IRN) by uploading specified particulars (in FORM GST INV-01) on the notified Invoice Registration Portals (IRP).
‘e-invoicing’ doesn’t mean generation of invoice by a Government portal.
‘e-invoicing’ facilitates exchange of the invoice document (structured invoice data) between a supplier and a buyer in an integrated electronic format.
- What is e-invoicing process? How is it different from present system?
Answer : There is no much difference indeed. Registered persons will continue to create their GST invoices on their own Accounting/Billing/ERP Systems. These invoices will now be reported to ‘Invoice Registration Portal (IRP)’. On reporting, IRP returns the e-invoice with a unique ‘Invoice Reference Number (IRN)’ after digitally signing the e-invoice and adding a QR Code. Then, the invoice can be issued to the receiver (along with QR Code).
A GST invoice will be valid only with a valid IRN.
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For which businesses, e-invoicing is mandatory?
Answer : Presently, it is mandated for registered persons whose aggregate turnover (based on PAN) in a financial year is more than Rs. 500 Crores.
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From which date, e-invoicing is mandatory for the notified classes of taxpayers?
Answer : As per latest notification, e-invoicing will be mandatory w.e.f. 1st October, 2020, for notified classes of registered persons (those having aggregate annual turnover at PAN level more than Rs. 500 Crores).
113 Frequently Asked Questions on GST e-invoice and IRN System A. E-invoice – Basics:
‘e-invoicing’ doesn’t mean generation of invoice by a Government portal.
‘e-invoicing’ facilitates exchange of the invoice document (structured invoice data) between a supplier and a buyer in an integrated electronic format.
A GST invoice will be valid only with a valid IRN.
For which businesses, e-invoicing is mandatory? Answer : Presently, it is mandated for registered persons whose aggregate turnover (based on PAN) in a financial year is more than Rs. 500 Crores.
From which date, e-invoicing is mandatory for the notified classes of taxpayers? Answer : As per latest notification, e-invoicing will be mandatory w.e.f. 1st October, 2020, for notified classes of registered persons (those having aggregate annual turnover at PAN level more than Rs. 500 Crores).