Topic- 

e-Invoicing: A New Era in GST

For the Certificate Course in GST

Submitted by
Shweta Badgujar
FCS 9289
Batch no.11
What is E-INVOICING
• e-Invoice known as
‘Electronic invoicing’ is
a system in which all
B2B invoices are
electronically uploaded
and authenticated by
the designated portal.
PROCESS OF E-INVOICE
What are the types of documents that are to be reported to the IRP?

• Invoices by the Supplier

• Credit Notes by the Supplier
• Debit Notes by the Recipient
• Any other document as required by law to be reported by the creator of the
document

What is the workflow of e-invoice?

Step 1 – Generation of e-invoice
Step 2 – Generation of unique IRN
Step 3 – Uploading the JSON final invoice
Step 4 – Hash generation/validation

Starting August 1, 2023, e-invoicing will be applicable for businesses with an annual
turnover of 5 crore and above.
 What are the benefits of e-invoicing?
• One-time reporting of B2B invoices while
generation, which reduces reporting in
multiple formats
• Sales and Purchase Registers can be generated
from this data, and GST returns can be kept
ready for filing under the new return system
• E-way Bills can also be generated using e-
Invoice data
• There is minimal need for data reconciliation
between the books, and GST returns filed
• Real-time tracking of invoices prepared by a
supplier can be enabled, along with the faster
availability of Input tax credit. It will also
reduce input tax credit verification issues
• Automation of the tax-filing process
• Reduction in the number of frauds
as the tax authorities will also have
access to data in real-time
• Elimination of fake GST invoices
getting generated
• a standard format allows invoices
to be shared easily  
• Invoices can be read by the central
system
• With e-invoicing, fields will
be pre-populated while filing
returns, thus avoiding
discrepancies during data
entry and reconciliation. 
 APPLICABILITY
to whom e-invoice will be applicable Who need not comply with e-Invoicing?

• Electronic Invoicing will be • As of now, businesses with a

applicable to all the turnover less than the
businesses that are registered mandated amount (i.e Rs.
under GST and issuing B2B 5crores) don't need to
invoices comply with the e-invoicing
• As per the latest mandate, all norm.
businesses with a turnover
exceeding 5 crores are
required to generate e-
invoices starting from 1st
August 2023.
How is e-invoice different from the current practice of invoicing?
 How is e-invoice different from the current
practice of invoicing?
Invoice E-Invoice
• Currently, an invoice generated by the • E-invoice is a system in which
seller needs to be prepared and reported to
two different systems: GST Portal and e- the invoice needs to be
Way Bill.   electronically uploaded and
• Businesses generate invoices using different
authenticated with a unique
software and the invoice details are
entered using a suitable API by the taxpayer invoice reference number
in a GSTR-1 return. The same information is (IRN) and digitally signed QR
reflected in a GSTR-2A and made available
to recipients with ‘view only’ permission. code. The change is that the
• Simultaneously, transporters are required seller needs to print the QR
to generate the e-Way Bill, either directly code and IRN number on the
or by importing the invoices into an excel
sheet or JSON manually.  invoice before issuing it to the
buyer.
 Disadvantages of e-invoicing system
1. The main purpose of the introduction of e-invoicing is the
reduction of tax evasion. But, the new system only facilitates e-
invoicing of B2B invoices and not B2C invoices. The maximum
number of frauds happen in B2C invoices as no ITC is involved.
Thus, such a system should come into force which allows
customers to report non-compliant invoicing and thus help to curb
tax evasion at its source.

2. Another disadvantage is that an archiving option is not available

on IRP. It has no mandate to store invoices for more than 24 hours. 

3. Creating a different workflow for various types of transactions

requires a lot of time and effort.
 the rule for e-invoicing?

CGST Rule 48 lays down the rules for the applicability and generation of e-invoices.
 What data is embedded in the QR code?

• The QR code contains the following data:

• GSTIN of supplier and recipient
• Invoice Number
• Date of generation of invoice
• Invoice value
• Number of line items
• HSN code of the item with highest taxable value
• Unique IRN
• Date of generation of the IRN
 What is penalty for not making e invoice?

• The taxpayer must pay 100% of the tax due or

Rs.10,000, whichever is higher, if they do not
generate an e-invoice. Moreover, the penalty
 for incorrect invoicing is Rs.25,000 per
invoice.
 Reference/Source
• https://einvoice1.gst.gov.in/

• Source: last FAQ doc released by GSTN

• Notifications
 THANK YOU

CS SHWETA BADGUJAR Ph. 9619767607

PRACTISING COMPANY SECRETARY AT
SHWETA BADGUJAR AND ASSOCIATES