A Guide to E-invoice Generation under GST

A Guide to E invoice Generation under GST

  • The GST Council approved the standard of e-invoice in its 37th meeting held on 20th September 2019.
  • E-invoicing is proposed to be implemented from 1st January 2020.
  • It will be implemented in a phased manner by GSTN.
  • Similar to the new GST return filing system, the electronic invoicing system will first be available on a trial basis or voluntary compliance


Concept of E-invoicing:

  • E-invoicing is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal.

How does the system of E-Invoicing work?

Refer to the below step by step guide to understand how the system of E-Invoicing work under GST.

Step 1: JSON File Generation:

Taxpayers have to upload the invoice details in their accounting software (Tally, ERP, Busy, SAP etc.) and generate the JSON file.

Step 2: JSON File Upload:

Now this JSON file has to be uploaded onto the Invoice Registration Portal (IRP) to be managed by the GST Network.

Step 3: Invoice Validation:

IRP will validate the key details of the B2B invoice, checks for any duplication.

Step 4: E-Invoice Generation by IRP:

IF all the key details of the e-invoice are found appropriate, the Invoice Registration Portal will take following actions:

  • Generates an Invoice Reference Number (IRN);
  • Digitally signs the invoice;
  • Creates a QR code in Output JSON for the supplier.

Step 5: E-Invoice Intimation:

After successful generation of e-invoice, the IRP intimates the relevant stakeholders. IRP sends the e-invoice data with digital signature and QR code to the following:

  • Seller (on email id).
  • Buyer (on email Id).
  • GSTN Portal:
    • In ANX-1 (for outward supplies) for the seller, and
    • In ANX-2 (for inward supplies) for the buyer.
  • E-way Bill System:
    • For creating Part-A of e-way bill and only vehicle number have to be added in Part-B of the e-way bill.

Other Important Notes:

  • Buyer has an option to accept or reject the transaction.
  • GST system, further, will determine tax liability and input tax credit (ITC).
  • The signing of e-invoice by seller is not mandatory.
  • The invoices with an IRN Number will be considered as a valid tax invoice for GST purposes.

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