E- Invoice:-

Threshold limit for the applicability of E-invoice reduced from INR 10 Crores to INR 5 Crores. When aggregate turnover exceeds 5 crore in any of the previous 5 years, for the purpose of the aggregate turnover limit, even the exempted turnover would be considered.

This is applicable from 1st August, 2023 as per Notification No. 10/2023 – Dated 10th May, 2023

Benefits of E-Invoicing under GST

  • E-invoicing reduces the possibility of errors, omissions, and fraud by automating the invoice generation process and ensuring that invoices are accurate and complete.
  • E-invoicing significantly reduces the time it takes to process invoices by eliminating the need for manual data entry and reducing the chances of errors and disputes.
  • E-invoicing ensures compliance with GST regulations by automatically validating invoices and ensuring that they are compliant with GST rules.
  • E-invoicing provides real-time access to invoice data, allowing businesses to manage their cash flow more effectively.
  • E-invoicing eliminates the need for paper-based invoices, reducing the environmental impact of invoicing and contributing to sustainable development.

Process of E-Invoicing under GST

  • The seller generates the invoice using his/her ERP or accounting software, which is integrated with the e-invoice system.
  • The invoice details are uploaded to the Invoice Registration Portal (IRP) in JSON format, which is an e-invoice standard format.
  • The invoice is validated by the IRP, which checks the details against the GST rules and generates an Invoice Reference Number (IRN).
  • The IRN is embedded in a QR code along with other invoice details, which is printed on the invoice.
  • The e-invoice is shared with the buyer via email or any other digital medium.
  • The invoice details are automatically reported to the GST portal, eliminating the need for manual filing of returns.