Accountant & Invoicing Software
4.8
13585 Customers
1 time setup and activation fee on LEDGERS. Rs.0.5 per eInvoice.
Basic
- GST Invoicing
- GST eInvoicing
- eWay Bill
- Input Tax Credit
- GST Software for Accountants
- Integrated payment gateway
Basic
- GST Return Filing
- Income Tax Return Filing
- LEDGERS Platform
Offers and discounts
Get GST eInvoice with Input Tax Credit
Pricing Summary
Market Price :₹9,899
Bmcsindia: ₹5899 All Inclusive
₹4999 + ₹900GST
Annual Price: ₹19899
You Save :₹4,000(40%)
GST eInvoice
The introduction of GST eInvoicing in India marks a significant shift from traditional paper-based systems to a more efficient and digital era. This transition promises businesses substantial cost savings and increased operational speed and efficiency. The benefits extend beyond just financial advantages; eInvoicing also aims to alleviate the compliance burden for businesses.
By eliminating the need for duplicating or transferring information from one system to another, eInvoicing streamlines processes and reduces the chances of errors. The data provided to GSTN for generating Invoice Reference Number (IRN) will serve as a central source, auto-populating various systems such as GST returns, input tax credit reconciliation, eWay bills, and GST refunds.
In essence, GST eInvoicing is a game-changer that not only improves the ease of doing business but also significantly lightens the compliance load for businesses. This transition to digital invoicing is a step towards a more seamless and efficient business environment in India.
eInvoicing Implementation Date
Absolutely, the proposal for implementing eInvoicing in India was indeed discussed during the 35th GST Council Meeting in June 2019. Following this meeting, the GST Council approved the in-principle launch of a pilot project for the voluntary online generation of B2B e-invoices, with the initiative set to kick off in January 2020. This marked a significant step towards the digitization of invoicing processes and showcased the commitment to adopting modern and efficient methods in the GST framework.
| Timeline | Turnover | Supply Type | Implementation |
|---|---|---|---|
| January, 2021 | GST registered entities having an aggregate turnover of more than INR 100 crores. | B2B | Voluntary |
| April, 2021 | GST registered entities having an aggregate turnover of more than INR 50 crores. | B2B | Voluntary |
| April, 2021 onwards | GST registered entities having an aggregate turnover of more than INR 20 crores. | B2B | Mandatory |
The Government has provided exemption to certain classes of persons from implementation of eInvoicing through Notification No.13/2020-Central Tax dated 21st March, 2020. As per the notification, the following entities are exempted from the above implementation timeline:
- An Insurer, Banking Company or Financial Institution including NBFC
- Goods Transport Agency
- Passenger Transport Service
- Admission to exhibition of Cinematograph Films in Multiplex Screens
Advantages of GST eInvoice
Absolutely, the implementation of GST eInvoicing in India is set to bring about a revolutionary transformation in the business processes. The absence of standardized invoice formats has been a challenge, and eInvoicing aims to address this by providing a uniform format across the entire GST eco-system. This standardization ensures that an eInvoice generated by one software can be seamlessly read by another, eliminating the need for manual data transfer or re-entry.
Key Concepts of eInvoicing
The following are some of the key concepts with respect to GST eInvoicing:
Generating eInvoice
Indeed, GST eInvoicing in India is not about generating invoices on a centralized government portal. Instead, it follows a decentralized process where taxpayers themselves generate a unique Invoice Reference Number (IRN) for each invoice. This approach avoids the creation of a potential choke point in trade by distributing the responsibility of generating IRNs to individual taxpayers.
Invoice Reference Number (IRN)
Absolutely, the Invoice Reference Number (IRN) plays a crucial role in the eInvoicing system in India. It is a unique identifier assigned to each invoice by the GST Invoice Registration Portal. Once a taxpayer successfully uploads an eInvoice, the portal generates a distinct IRN for that specific invoice.
eInvoice Format
There is no specific format for eInvoice that has been provided by the GSTN. There will also be no changes to the invoice that is prepared and printed today. Under eInvoicing, certain data in the GST invoice will be transmitted to the GSTN Invoice Registration Portal (IRP) electronically and a Invoice Reference Number will be generated along with a QR code. The QR code needs to be printed on the invoice generated by the supplier. Hence, suppliers can continue to generate invoices from their billing softwares with a look and feel that suits their requirements and compliant with the GST invoicing rules. The only change will be generation of Invoice Reference Number from the GST Invoice Registration Portal and printing of eInvoice QR code on the invoice.
Invoice Registration Portal (IRP)
Indeed, you're correct. The Invoice Registration Portal (IRP), also known as the eInvoice Registrar, is the platform responsible for issuing the unique Invoice Reference Number (IRN). In the initial stages, the National Informatics Centre (NIC) has been proposed as the first IRP.
Generating GST eInvoice
The process of generation of a GST eInvoice can be divided into four phases:
Generation of Invoice
Exactly, you've outlined the initial phase of the eInvoicing process accurately. In this phase, the seller generates an invoice using their accounting, billing, or ERP system. It's crucial that the invoice adheres to the eInvoice standards published by the Goods and Services Tax Network (GSTN) and includes the mandatory parameters specified.
Uploading JSON to Invoice Registration Portal
Absolutely, you've captured the transmission process accurately. The seller's accounting software can utilize APIs (Application Programming Interfaces), GSP/ASP (Goods and Services Tax Suvidha Provider/Application Service Provider), or offline tools to transmit the prepared invoice in JSON format to the Invoice Registration Portal (IRP).
Processing of Data by IRP
Exactly, you've outlined the crucial steps in the eInvoicing process accurately. Once the Invoice Registration Portal (IRP) receives the JSON invoice from the seller's accounting software, it goes through a validation process. The IRP checks for correctness and ensures that the same invoice from the same supplier is not duplicated within the system.
Transmission to GSTN & eWay Bill Platform
IRPs will also share the signed eInvoice data with the GSTN system and eWay Bill portal to reduce compliance burden for the taxpayers.
Invoice Reference Number (IRN)
You've provided a comprehensive understanding of the Invoice Reference Number (IRN) in the context of the eInvoicing system. The IRN, a 64-character-long unique identifier, plays a crucial role in the GST system, remaining distinct regardless of the taxpayer, financial year, or document type.
The generation of the IRN by the Invoice Registration Portal is based on a combination of key elements, including the supplier's GSTIN, document type (INV for invoice, CRN for credit note, DBN for debit note), document number, and the year of the invoice. This combination ensures that each IRN is unique to a specific invoice and provides a standardized reference point within the GST ecosystem.
The introduction of the IRN adds an extra layer of traceability and uniqueness to the eInvoicing process, contributing to the overall efficiency and reliability of electronic invoicing in the GST framework.
Absolutely, you've captured the significance of the QR code in the eInvoicing process accurately. The QR code generated by the Invoice Registration Portal (IRP) plays a crucial role in validating the authenticity and details of an invoice. The QR code is designed to contain essential information for easy verification online. The eInvoice QR code typically includes the following information:
- GSTIN of supplier
- GSTIN of recipient
- Invoice number as given by supplier
- Invoice date
- Invoice value
- Number of line items
- HSN code of main item (Item with highest value)
- Unique Invoice Reference Number (IRN)
GST eInvoice Format
You've highlighted an important aspect of the GST eInvoice process. The clarification by GSTN that writing the 64-character IRN is not required by the seller simplifies the invoicing process. Instead, including the IRN in the QR code provided by the Invoice Registration Portal streamlines the information on the invoice itself.
By making the digitally signed QR code a response, it serves as proof of the registration of the invoice. This not only ensures the authenticity of the document but also facilitates a cleaner and more user-friendly invoice format. Including the necessary details in the QR code simplifies the documentation for businesses, making it a practical and efficient approach to comply with eInvoicing regulations in the GST system.
Time Limit for Generating eInvoice
Absolutely, you've emphasized a critical aspect of eInvoicing in the GST system. The time limit for generating an eInvoice, as notified by the Government, becomes a crucial factor in the validity of the invoice. In this framework, an invoice is considered valid only after it has been registered with the Invoice Registration Portal (IRP), and the QR code has been generated.
This underscores the importance of completing the eInvoicing process before the movement or delivery of goods or services, as well as before the filing of GST returns. It ensures that the necessary checks and validations are in place, enhancing the accuracy and compliance of the overall invoicing system. Adhering to the specified time frame becomes integral to ensuring the validity and authenticity of eInvoices within the GST ecosystem.
Cancellation of eInvoice
An eInvoice once generated can be fully cancelled within 24 hours on the Invoice Registration Portal. After 24 hours, cancellation of eInvoice on the Invoice Registration Portal will not be possible and the same will have to be done on the GST Portal before filing of GST return.
Once a GST eInvoice is cancelled, the same invoice number cannot be used again to generate another invoice.
Amendment of eInvoice
You've highlighted an important aspect of the eInvoicing process. Once an eInvoice has been generated on the Invoice Registration Portal (IRP) and the IRN has been assigned, any subsequent amendments to that invoice must be made on the GST Portal. Attempting to send an amended invoice back to the IRP as a JSON file will result in rejection, as the system would recognize it as a duplicate IRN.
| Features | Proprietorship | Partnership | LLP | Company |
|---|---|---|---|---|
| Definition | Unregistered type of business entity managed by one single person | A formal agreement between two or more parties to manage and operate a business | A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. | Registered type of entity with limited liability to the owners and shareholders |
| Ownership | Sole Ownership | Min 2 Partners Max 50 Partners | Designated Partners | Min 2 Shareholders Max 15 Directors Max 200 Shareholders 1 Director 1 Nominee Director |
| Registration Time | 7-9 working days | |||
| Promoter Liability | Unlimited Liability | Limited Liability | ||
| Documentation | Partnership Deed | LLP Deed Incorporation Certificate | ||
| Governance | – | Under Partnership Act | LLP Act, 2008 | Under Companies Act,2013 |
| Transferability | Non Transferable | Transferable if registered under ROF | Transferable | |
| Compliance Requirements | Income tax filing if turnover is more than Rs.2.5 lakhs | ITR 5 | ||
Frequently Asked Questions
BMCS India offers comprehensive business consultancy services, including strategy development, market research and analysis, financial advisory, operational optimization, and organizational transformation. We provide customized solutions to help businesses address challenges and achieve their growth objectives.
BMCS is the top most business management consultant all around the world. Our team of experienced consultants leverages industry knowledge, market insights, and proven methodologies to provide tailored solutions that align with your business goals. Whether you need assistance with market entry, strategic planning, process optimization, or talent management, we collaborate closely with you to understand your unique needs
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