December 30, 2022
Reddy Mohith

Frequently asked questions on E-invoicing

Beginning on 1st October 2020, taxpayers with an aggregated revenue over Rs. 500 crores will be subject to the GST's e-Invoicing system. From 1st January 2021, e-invoicing was made available to companies with a combined turnover of more than Rs. 100 crore.

The CBIC also announced on 8th March 2021 that starting on 1st April 2021, enterprises with annual sales between Rs. 50 crore and Rs. 100 crores will be able to use the e-invoicing system. After that, the government expanded the use of electronic invoices to companies with annual sales of greater than Rs 20 crore, effective from 1st April 2022.

Recently, the system expanded to include companies with annual revenues of over Rs. 10 crores starting in October 2022. And from 1st January 2023, the e-invoicing method will also apply to companies with earnings exceeding Rs. 5 crores.

The aggregate turnover for e-invoicing includes the whole turnover of all GSTINs in India under a single PAN. You can check and verify the GSTIN in which you want to generate the e-invoice using the GST search function if you have several GSTINs on hand.

So, what is an e-invoice? Here are a few frequently asked questions about e-invoicing.

Frequently Asked Questions

1. What is an e-invoice?

A system of raising invoices is known as electronic invoicing or e-Invoicing. It enables invoices produced by one software to be read by any other software, alleviating the need for further data entry or mistakes. In other words, it is a statement created in a standard format whose electronic data may be exchanged electronically, assuring data interoperability.

2. Can I cancel or amend the invoice if I entered the incorrect data?

Yes, you can cancel or amend your invoice if you have entered incorrect information with some terms and conditions. There are two you can do this.

IRP (Invoice Registration Portal) amendment and cancellation

GST portal amendment and cancellation

3. What are IRP (Invoice Registration Portal) amendment and cancellation, and how do you do it?

Within 24 hours of generating the invoice, the IRP portal opens a cancellation window, but you cannot amend the invoice on the IRP portal. However, you can do this via the GST portal.  

4. How can you cancel it?

IRP can only store invoices for up to 24 hours, and you cannot edit the information.

So, to cancel the invoice, one must do it within 24 hours of generating the statement.

Also, you cannot cancel the invoice partially. So, you must cancel the complete invoice with the incorrect data and then create a new invoice with the correct information.

Since you cannot use the same invoice number, upload the new invoice to generate the new IRN.

Therefore, the new e-invoice with a unique IRN and QR code is ready.

5. What is GST portal amendment and cancellation, and how do you do it?

The IRP cannot be modified, but you can make the essential modifications to the invoice details provided on the IRP while filing GSTR-1 on the GST portal. Since the IRP systems and the GST system are integrated, as soon as an e-invoice is issued, the invoice details are automatically filled out in GSTR-1 and are editable.

6. How do you cancel it?

Similarly, you cannot cancel the invoice in the GST portal after 24 hours. So, via IRP, the cancellation should be reported to IRN within a day of generating the invoice.

To cancel the single invoice:

Sign in to the GST portal, select the cancellation bar, and enter the acknowledgment number or the IRN. Later, select the invoice and enter the cancellation reason, then click on the submit button.

To cancel in bulk:

On the e-invoice portal, go to bulk tools and select the bulk generation tools. Download the offline utility e-invoice cancel by IRN - JSON preparation. And click validate after entering the IRN, cancelation reason, and cancel remarks. Once the file gets validated, click on prepare JSON. After that, log in to the e-invoice portal, select e-invoice, go for bulk IRN cancel, and then upload the JSON file.

7. How do you amend an invoice?

You can amend your invoice on the GST portal, enabled by the GST law. Since IRP systems are linked to GST systems, the information is auto-updated in GSTR-1. So, you can amend your invoice when filing the GSTR-1.

8. What products are now covered by e-invoicing?

Currently, e-Invoicing applies to

a. The notified class of taxpayers may make a B2B supply to registered individuals.

b. Supplies to SEZ developers (with or without payment of tax)

c. Exports (with or without tax payment) and deemed exports.

d. It excludes sales made on the high seas, bonded warehouses, import transactions, input service distributors, and free trade and warehousing zones (FTWZ). The exemption only applies to entities, not to transactions.

9. What are the advantages of e-invoicing?

Here are a few advantages of electronic billing:

B2B invoices are reported once during generation, reducing the need for numerous reporting forms.

When employing an e-invoicing system, the majority of the information on the form GSTR-1 can be prepared for filing.

Data verification between the accounts and the submitted GST returns is largely unnecessary.

One can use the data from an e-invoice to create e-way bills effortlessly.


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