The Goods and Services Tax or GST e-invoice in India has been made mandatory to prevent tax evasion and allow an invoicing standard in the country. The main purpose of introducing the GST invoicing was to electronically validate all B2B transactions, and pre-populate the relevant information into the GST forms of taxpayers.
The generation of GST e-invoice was made mandatory October 20230 for all those businesses whose have an annual turnover of Rs 500 crore. Now from 1 August 2023, it is mandatory for businesses with aggregate turnover of Rs 5 crore or more to generate the GST e-invoice.
According to a tweet by the Central Board of Indirect Taxes and Customs, "GST taxpayers whose aggregate turnover exceeds Rs 5 crore in any financial year, generating e-invoices for both supply of goods or services or both, or for exports will be mandatory from August 1."
The Invoice Registration Portal (IRP) is where all B2B and export invoices must be uploaded by people who are GST registered. A distinct Invoice Reference Number is given to the person by the IRP, and this number is then transferred to the GST portal. It prevents duplication and inaccuracies by helping buyers and sellers match invoices.
Steps To Generate the GST e-invoice Online
Go to the officials GST Portal, gstn.org.
Create an invoice using any accounting or billing software. The invoice should be in the prescribed e-invoicing format.
Now generate a a unique Invoice Reference Number (IRN) on the Invoice Registration Portal (IRP).
Upload the invoice along with IRN in the format of a JSON file on the IRP system.
The IRP will carry out the validation and authentication of the Jason file and will create a IRN, which will be the unique identity of the e-invoice throughout the complete financial year.
Once the verification process is complete, a digital QR code will be added to the JSON file, and the invoice will be labelled with an IRP digital signature.
The uploaded date will be consolidated in the e-way bill and GST system, where GST Annexures will be auto populated.
The seller will receive the digitally signed JSON along with IRN and QR code back. The buyer will also get the invoice on its registered email ID.