E-invoicing mandate in India

Updated on 10th Nov 2020: E-invoicing is mandatory for taxpayers having aggregate turnover above Rs. 100 Cr from 01st Jan 2021 | GST Notification 88/2020

Updated on 5th Aug 2020:Version 1.03 of E-Invoicing API specification is released for testing on 05th Aug 2020 in the sandbox. The changes are in accordance with the revised version of e-invoice schema- Version 1.1, released via e-invoicing Notification 60/2020 of Central Tax dated 30 July 2020. For details on changes as per new schema, you can check on our blog E-Invoice LIVE Date: 1st October 2020 – Version 1.1 of E-Invoice Schema Released.

Updated on 23 July 2020: Taxpayers with a turnover of Rs. 500 cr & above in the FY 2019-20 are mandated to generate e-invoice from October 2020. Login to the e-invoice portal enabled.

Updated on 14 May 2020: Version 1.02 of E-Invoicing API specification were released on 14th May 2020 on the sandbox. The specification mostly has changes related to validation and new API for Generate EWB by IRN

Ever since the introduction of GST from the Indian taxation system, GST officials were more diligent to work out a mechanism to prevent tax evasion in India. Through time, there were cases wherein tax fraudsters are captured using bogus invoices to evade taxes or claim added ITC. And such incident was just possible in the lack of a suitable mechanism to handle this type of scenario on a national level. So, e-invoicing under gst came into being! Thus, e-invoice generation and ITC Claim will proceed together. This may result in lower tax issues in the not too distant future.

Introduction to E-Invoicing at India

To avert the additional occurrence of these tax evasions, the government is presently working in an E-invoicing mandate. Under this mechanism, businesses with an yearly turnover exceeding a"yet-to-be-decided" sum will be asked to make a digital statement either to a government portal site or about the Goods and Services Tax (GST) portal site.

The government has established a committee, including fundamental, state tax officials and GST Network Chief Executive to research the feasibility of introducing the E-invoicing beneath GST to streamline the generation of invoices and also alleviate the compliance burden.

Additionally, to ensure simpler assimilation of this E-invoice mechanism to GST, businesses would also be given with the applications, which is connected to the GST portal site for creating E-invoice. The threshold for the exact same could be adjusted on the basis of the value of this bill.

The data that is to be sent to NIC (Invoice Registration portal) is in a JSON (JavaScript Object Notation) format. In layman terms, in JSON file the data is structured in such a way that each data point has a parameter name and a value for that data point is reported against such parameter name. Two data points are separated with a comma. For E.g.: a simple JSON for your understanding: {"DocDtls": {"DocNo": "1090", "DocType": "INV"}}

The actual e-invoicing JSON is more detailed than this and can have multiple structures. Each parameter can have a different type of e-invoicing validation rules.

Fast Takeaway

Businesses Will Need to create a digital statement either on a government portal site or about the Goods and Services Tax (GST) portal.

Businesses, together with turnover over the specified threshold, will initially receive a exceptional number for every single E-invoice generated.

The exceptional number could be matched with all the invoices reported from the earnings return and taxes paid.

The practice of creating e-invoice would be like this one being followed to get the electronic way bill on E-waybill. nic.in or GST payments.

IRIS Onyx is an automated, integrated and seamless E-invoicing solution!

It's a one-stop E-invoicing solution that could incorporate with your billing systems seamlessly in numerous approaches and create IRN without any disruption to your company.

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