According to economic times, by 2020, India was losing 75,000 crores due to tax evasion. In an effort to combat tax evasion and promote transparency in business transactions, the government of India has implemented e-invoicing. With real-time data availability and authentication of invoices through the Invoice Registration Portal, the scope for fake invoices has significantly reduced, enabling the claiming of genuine Input Tax Credits. To ensure compliance and claim eligible credits, buyers must verify whether their suppliers are e-invoicing compliant. In this blog post, we will discuss the steps buyers can take to check if a GSTIN (Goods and Services Tax Identification Number) is required to raise an e-invoice and how to determine if e-invoicing is enabled for a particular GSTIN.
The implementation of e-invoicing in India has been phased in, with different turnover thresholds determining its applicability.
To check if a GSTIN is required to raise an e-invoice, follow these steps:
Step 1: Visit the e-invoice portal.
Step 2: Go to the search tab and select “GSTINs generating IRN”.
‘GSTINs generating IRN’ page will be displayed.
Click on the ‘Download’ button for one to download the excel file from here.
Also, this list keeps on updating, so one can refer to the last updated date before downloading the file. This list will help the taxpayer to find out if a particular GSTIN is listed or not for generating IRN.
Here is a direct link: https://einvoice1.gst.gov.in/Others/GSTINsGeneratingIRN
Note: It is essential to refer to the last updated date before downloading the file, as the list is continually updated.
To determine if e-invoicing is enabled for a particular GSTIN, follow these steps:
Step 1: Visit the e-invoice portal.
Step 2: Go to the search tab and select “e-invoice status of taxpayer”.
Step 3: Enter the GSTIN and the captcha code. Click Go.
This status is based on the turnover reported by a GSTIN in its GSTR-3B. However, it should be noted that the enablement status on the e-invoice portal doesn’t mean e-invoicing is applicable to a particular taxpayer. If a particular category of the taxpayer is exempt from e-invoicing, then the e-invoicing enablement status can be ignored.
To ensure vendor compliance with e-invoicing norms, buyers should review specific fields in the e-invoice. Here are key elements to check:
The buyer should look for the presence of the IRN on the invoice received. This unique reference number is generated after the invoice is verified by the GSTN, indicating compliance with e-invoicing requirements.
The invoice should feature a QR code, digitally signed by the Invoice Registration Portal. The buyer can use a QR code verification app to scan the code or upload a JSON file for validation. A valid QR code will provide invoice details, including GSTIN, invoice number, supplier and buyer information, date of generation, HSN code, invoice value, unique invoice reference number, and the digital signature of the IRP.
Ensure that the supplier's GSTIN and legal name mentioned in the e-invoice match the information provided by using a trusted GSTIN verification tool, such as ClearTax GSTIN Verifier.
With the implementation of e-invoicing in India, it became crucial for buyers to verify the compliance of their suppliers to ensure the legitimacy of invoices and claim eligible Input Tax Credits. By following the steps outlined in this blog post, buyers can easily check if a GSTIN is required to raise an e-invoice and determine if e-invoicing is enabled for a specific GSTIN. Additionally, buyers should pay attention to key elements such as the presence of the IRN, the QR code, and the accuracy of the supplier's GSTIN and legal name to identify non-compliant vendors. By staying vigilant and utilizing the available tools and resources, buyers can ensure vendor compliance in e-invoicing and streamline their business operations while complying with tax regulations. Utilizing Swipe as a GST Suvidha Provider (GSP) on the e-invoice portal can further simplify invoicing processes, reduce errors, and save time.