E Way Bill

E-way bill or Electronic-way bill is a document introduced under the GST regime that needs to be generated before transporting or shipping goods worth more than INR 50,000 within state or inter-state. The physical copy of e-way bill must be present with the transporter or the person in charge of the conveyance and should include information such as goods, recipient, consignor and transporter. 

How will Electronic invoicing benefit businesses?

Businesses will have the following benefits by using e-invoice initiated by GSTN:

  1. E-invoice resolves and plugs a major gap in data reconciliation under GST to reduce mismatch errors.

  2. E-invoices created on one software can be read by another, allowing interoperability and help reduce data entry errors.

  3. Real-time tracking of invoices prepared by the supplier is enabled by e-invoice.

  4. Backward integration and automation of the tax return filing process – the relevant details of the invoices would be auto-populated in the various returns, especially for generating the part-A of e-way bills.

  5. Faster availability of genuine input tax credit.

  6. Lesser possibility of audits/surveys by the tax authorities since the information they require is available at a transaction level.

What is the process of getting an e-invoice?

The following are the stages involved in generating or raising an e-invoice.

1: The taxpayer has to ensure to use the reconfigured ERP system as per PEPPOL standard. He could coordinate with the software service provider to incorporate the standard set for e-invoicing, i.e. e-invoice schema (standards) and must have the mandatory parameters notified by the CBIC, at least.

2: Any taxpayer has got primarily two options for IRN generation.
(1) The IP address of the computer system can be whitelisted on the e-invoice portal for a direct API integration or integration via GST Suvidha Provider (GSP).
(2) Download the Bulk generation tool to bulk upload the invoices. It will generate a JSON file which can be uploaded on the e-invoice portal to generate IRNs in bulk.

3: The taxpayer must thereafter raise a normal invoice on that software. He must give all the necessary details like, billing name and address, GSTN of the supplier, transaction value, Item rate, GST rate applicable, tax amount, etc.

4: Once either of the above options is chosen, raise the invoice on the respective ERP softwares or billing softwares. Thereafter, upload the details of invoice especially mandatory fields onto the IRP using the JSON file or via application service provider (app or through GSP) or through direct API. The IRP will act as the central registrar for e-invoicing and its authentication. There are several other modes of interacting with IRP such as SMS-based and mobile app-based.

5: IRP will validate the key details of the B2B invoice, checks for any duplications and generates an invoice reference number (hash) for reference. There are four parameters based on which IRN is generated: Seller GSTIN, Invoice number, and FY in YYYY-YY) and document type (INV/DN/CN).

6: IRP generates the invoice reference number (IRN), digitally signs the invoice and creates a QR code in Output JSON for the supplier. On the other hand, the seller of the supply will get intimated of the e-invoice generation through email (if provided in the invoice).

7: IRP will send the authenticated payload to GST portal for GST returns. Additionally, details will be forwarded to the e-way bill portal, if applicable. The GSTR-1 of the seller gets auto-filled for the relevant tax period. In turn, it determines the tax liability.

A taxpayer can continue to print his invoice as being done presently with logo. e-invoicing system only mandates all taxpayers to report invoices on IRP in electronic format.