Understanding GST e-Invoicing Software by Vijendra & Co

GST e-invoicing is an essential system under the Goods and Services Tax regime in India. It standardizes the format of invoices, ensuring seamless reporting and compliance. Businesses need to understand the Eligibility/ Applicability Criteria for GST e-invoicing software, the Benefits Provided under the GST e-invoicing software, and the Documents Required for GST e-invoicing software before implementation.

Eligibility/ Applicability Criteria for GST e-invoicing software

Originally designed for large firms, the GST e-invoicing system is now available to small and medium-sized organizations as well. It is applicable to companies whose yearly total revenue exceeds the threshold set forth in the GST Act. Entities registered under GST that issue Business-to-Business (B2B) invoices must comply with the e-invoicing requirements.

As per the latest updates, starting from August 1, 2023, e-invoicing becomes mandatory for all GST-registered individuals whose aggregate turnover (as per their PAN) in any preceding fiscal year from 2017-18 onwards exceeds five crores.

GST e-invoicing ensures better compliance and transparency in tax reporting, reducing tax evasion and streamlining business processes. Companies falling under the mandatory e-invoicing criteria must upgrade their invoicing systems accordingly to align with GST norms.

Benefits Provided under the GST e-invoicing software

• Reduction in Tax Evasion: Real-time invoice reporting allows tax authorities to monitor transactions efficiently, reducing fraudulent practices.
• Simplified GST Return Filing: Automated e-invoice generation facilitates seamless integration with GST return filing, eliminating manual errors.
• Elimination of Data Reconciliation Issues: The risk of mismatches between supplier and buyer invoices is significantly reduced.
• Faster Processing of Input Tax Credit (ITC): Since invoices are digitally authenticated, ITC claims are processed swiftly.
• Seamless Integration with Accounting Systems: Businesses can integrate Best GST e-invoicing software with their accounting tools to streamline workflows.
• Standardization of Invoice Format: GST e-invoicing introduces a structured format, ensuring uniformity across industries.

Documents Required for GST e-invoicing software

To generate an e-invoice under the GST framework, businesses must provide specific documents, including:

• The recipient's and supplier's GSTIN.
• The date and invoice number.
• HSN codes of goods/services supplied.
• Invoice value, taxable value, and tax breakup.
• The Invoice Registration Portal (IRP) generates the unique Invoice Reference Number (IRN).
• Digital signature or QR code, as generated by the IRP.

Exemption List for GST e-invoicing software

Certain categories of businesses and transactions are exempt from e-invoicing requirements. These include:

• Businesses with turnover below the threshold limit.
• Banking companies and financial institutions.
• Goods transport agencies issuing consignment notes.
• Special Economic Zones (SEZ) units.
• Non-GST supplies, including exempt and nil-rated supplies.
• Government departments and local authorities.
• Insurance companies, NBFCs, and similar entities.

GST e-Invoicing Format

The GST e-invoice format is standardized as per the guidelines provided by the GST Network (GSTN). It includes structured data fields that must be populated correctly. The format comprises:

• Basic invoice details such as invoice number, date, and supplier details.
• Buyer details, including GSTIN and place of supply.
• HSN code-based item classification.
• Tax breakup (CGST, SGST, IGST).
• Digital signature/ QR code for authenticity.
• Unique IRN generated by the IRP.

Mandatory Information for GST e-Invoicing Software

For seamless compliance, certain mandatory fields must be filled in every e-invoice, such as:

• Supplier’s and recipient’s GSTIN.
• Invoice number and date.
• Place of supply.
• Item description, HSN code, quantity, and unit price.
• Applicable tax rates (CGST, SGST, IGST).
• IRN and QR code.
• Signature or authentication by the issuing authority.

Types of Documents Reported to the IRP

Various documents are required to be reported to the IRP, including:

• Tax invoices issued by registered taxpayers.
• Debit notes and credit notes related to B2B transactions.
• Export invoices.
• Reverse charge invoices for transactions liable under reverse charge mechanism.
• Any document requiring GST compliance under the e-invoicing system.

Types of Transactions for Which E-Invoice is Required

E-invoicing is applicable for the following types of transactions:

• Transactions from Business to Business (B2B): All bills sent to taxpayers who have registered must be documented.
• Business-to-Government (B2G) Transactions: Supplies made to government entities that require GST compliance.
• Exports: E-invoicing is mandatory for all exports, ensuring smooth tax compliance and claiming of refunds.
• Reverse Charge Mechanism (RCM) Transactions: Transactions where the recipient is liable to pay tax under RCM.
• SEZ Supplies: Supplies made to Special Economic Zones (SEZs) are covered under e-invoicing.
• Deemed Exports: Supplies considered as deemed exports under GST law require e-invoicing.

Time Limit to Generate GST e-Invoicing

Businesses must generate and report e-invoices within the prescribed time limits. Any delay in generating the invoice may lead to non-compliance penalties. Generally, invoices should be uploaded to the IRP on the same day they are issued.

For businesses with an aggregate turnover of ?10 crores or more, the time limit to generate GST e-invoicing is 30 days from the date of invoice issuance. Failure to generate an invoice within this period can result in penalties or rejection of the invoice for GST compliance.

Procedure for Generating & Uploading the GST e-Invoice

The process of e-invoicing involves several steps:

1. Invoice Preparation: The supplier generates the invoice in the prescribed format using their accounting software.
2. IRP Uploading: For validation, the invoice information are posted to the IRP.
3. Validation & IRN Generation: The IRP verifies the invoice and generates a unique IRN.
4. QR Code & Digital Signature: The IRP digitally signs the invoice and assigns a QR code.
5. Transmission to GST Portal: The invoice details are automatically shared with the GST system for return filing.
6. Invoice Sharing: The supplier shares the e-invoice with the buyer for transaction completion.

Integration of e-Invoicing with GST Returns

One of the key advantages of Best GST e-invoicing software is the automatic integration with GST returns. Once an invoice is validated and uploaded, its details are reflected in the GSTR-1 return, reducing manual data entry and errors. Businesses benefit from faster ITC reconciliation and automated compliance tracking.

Cancellation/ Amendments of GST e-Invoices

Businesses can cancel e-invoices within 24 hours of generation. After this period, any corrections or amendments must be made through credit/debit notes. Cancellation requires submission of a valid reason and is processed via the IRP. Once an invoice is canceled, it cannot be used for filing GST returns.

In case of any errors, businesses must issue a fresh invoice and ensure compliance with GST e-invoicing rules. Amendments to already-reported invoices must be handled through appropriate documentation, ensuring consistency in GST filings.

Generate Your GST e-Invoices Quickly with Vijendra’s LEDGERS Software

At Vijendra & Co, we offer the Best GST e-invoicing software to help businesses comply with GST regulations efficiently. Our software simplifies the process, ensuring quick and error-free invoice generation with seamless GST return integration. Businesses may effortlessly handle their GST invoicing responsibilities thanks to an intuitive UI and automated reporting capabilities. The best GST e-invoicing software guarantees that your invoicing system is completely compliant, safe, and effective, regardless of how big or little your business is. Implementing a robust e-invoicing solution helps businesses streamline operations, reduce compliance risks, and improve tax reporting accuracy.