GST E-Invoice: Understanding the Concept and Process

GST E-Invoice
Sanjay Dwivedi
Sanjay Dwivedi, Advocate

Today’s Agenda
 What is e-Invoice? How is it different from our regular invoice?
 Why e-Invoice?
 Documents for which e-Invoicing is required.
 Transactions for which e-Invoicing is required.
 Categories of taxpayers who are exempted from issuing e-Invoice.
 Process of generating e-Invoice.
 Tools available for generating JSON
 Using GePP – Step-by-Step
 Using Bulk IRN Generation Tool
 Legal Provisions
 Resources for Learning

E-Inv QR
Code
Regular
Inv IRN

Normal
Invoice
E-Invoice

Invoice Reference Number
• IRN is a unique 64-character hash
• For example:
35054cc24d97033afc24f49ec4444dbab81f542c555f9d30359dc
75794e06bbe
• It is unique to the invoice. Every invoice will have different
IRN. No two invoices can have the same IRN

Quick Response Code

Tax Invoice
 Proof of transaction
 Determination of tax
 Record for future
 Absence evasion

Why e-Invoice?
Problem
• Manipulation of Invoice
Solutions
 Reduction of cash transaction
 e-way bill for goods
 RFID on Vehicles
 e-Invoice

The three portals are inter-connected
E-
Invoice
GSTR-
1
E-way
Bill
GSTR-
2B

Documents Covered
IRN & QR Code
Applies to
• Tax Invoice
• GST Debit Note
• GST Credit Note
Does not Apply to
 Bill of Supply
 Job-Work Challan
 Other Delivery Challans
 Financial Cr./ Dr. Notes

Transactions Covered
IRN & QR Code
Applies to
• B2B Supplies
• Exports
• Supply to SEZ
• Deemed Exports
Does not Apply to
 B2C Supplies

Categories not covered
• Goods Transport Agency
• Passenger transport service (tickets)
• Cinema Tickets
• SEZ Units
• Insurance company
• Banking Company, Financial Institutions, Non-banking Financial
Company

How?
• Login to the portal: https://einvoice1.gst.gov.in/
• Your e-way bill login details will work on this portal also.
• One who is not registered on e-way bill portal, will need to register
separately on the e-invoice portal.
• Check whether your GSTIN is enabled

Main Menu – after login

The 3 Step Process
1
• Upload the Invoice information
to the e-Invoice portal
2
Get from the portal
• IRN
• Acknowledgement No.
• QR Code
3
• Incorporate it in the Invoice
However, the
portal recognises
only JSON
format

Ways to facilitate the process:
• Using any software for Invoice generation (SAP, Tally etc.): Makes the process
very easy. The software itself
• Uploads the invoice data to the portal
• Downloads the IRN & QR code; and
• Incorporates it in the Invoice
• If not, then use any of the following excel tool available on the portal:
• GePP Tool
• Bulk IRN Generation Tools
It is better to use GePP tool if the number of Invoices are less than 20 at a time.

Ways
Software
Excel
Tools
GePP
Bulk

Tools on Portal for JSON Generation
• Fill in the data – convert to JSON
• Login to the portal
• Go to e-Invoice>> Bulk Upload
• Upload the JSON file
• Confirm

Which tools to use?
• GePP tool:
• Useful for maximum 20 Invoices daily.
• Maximum 20 line items in each Invoice.
• Bulk IRN Tool: If we want to issue more than 20 Invoices.

Tools on the portal

Using GePP – Preparation
Fill up the three Masters
• Supplier Profile: It is your detail
• Recipient Profile: It is your
customer’s detail
• Product Master: It is list of the
goods/ service that you would
supply. It becomes the line item
in the Invoice.

Using GePP – Step-by-Step
Excel Tool: New
Invoice
Pending Invoice
– Validate –
Prepare JSON
Upload the JSON
to e-Invoice
Portal
On portal:
Generate IRN
From Portal:
Download pdf &
excel files
In the excel tool:
Import QR Code
Print e-Invoice

Using GePP – Step-by-Step

GePP: New Invoice
• New Invoice
• Fill up first column first
• Type initials of legal name. Double click the full name.
• Add new product:
• Sr. No.
• Product description (initials)….select
• Correct the unit price
• Check
• Submit …Submit …..Confirm

GePP: Complete the process
• Go to eInvoice/ Validate/ Prepare Json
• Upload the Json to e-Invoice portal
• Download pdf & excel
• Menu/ Pending Invoices/ Import QR Code (pulls the excel file in the
tool)
• More/ Push to History

e-Invoice Verification App
1 2
You receive a download link
via SMS
3

Bulk Generation Tool

Bulk IRN Generation: 4 Formats
• Format A: Invoice details and Item details are in the same sheet.
• Format B: has a separate sheet for Items.
• Format C: Similar to B, plus separate sheet to add payment and
reference details (if we want to include our bank account details, PO
references etc.)
• Format D: Similar to A, plus separate sheet to add payment and
reference details

Bulk IRN
Generation
Without Payment
& Reference
Single Sheet
Separate Sheet for
Item
With Payment &
Reference
Separate Sheet for
Item
Single Sheet
A D
B C

Print e-Invoice
• E-Invoice/ Print

FAQs
1. Turnover in which year? Any year from 2017-18 to 2021-22. (Do not
include the current year).
2. Does turnover include GST? No
3. Does turnover include ‘interest’ received from banks or other persons?
Yes, it includes all exempted, nil-rated, non-taxable, non-GST supplies.
4. Do we have to issue e-Invoice for B2C sales? No
5. What about exports and SEZ supplies? We have to issue e-invoice for
exports and SEZ supplies.

FAQs
6. What happens if e-Invoice is not issued? It will be treated as if you
did not issue an invoice.
• In case of Invoice/ Debit Note penalty would be imposed on you; and your
customer will not be able to claim ITC.
• In case of Credit Note, you may not be allowed to reduce your tax liability.
7. Do we need to buy a special software to issue e-Invoice? Not
mandatory. You can also use the excel utility provided by the portal.
(But software is convenient).
8. Does Tally have a facility of generating e-Invoice? Yes

Legal Provisions
• Rule 48
• Notification 13/2017-CT
48 (4) The invoice shall be prepared by such class of registered persons as may be notified by the Government, on the
recommendations of the Council, by including such particulars contained in FORM GST INV-01 after obtaining
an Invoice Reference Number by uploading information contained therein on the Common Goods and Services Tax
Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.
“Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt a person or a
class of registered persons from issuance of invoice under this sub-rule for a specified period, subject to such
conditions and restrictions as may be specified in the said notification”.
(5) Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the manner specified in
the said sub-rule shall not be treated as an invoice.

• Invoice to contain particulars mentioned in form INV-01
• Invoice to contain IRN
• IRN to be obtained from GST portal
• The above, applies to a notified class.
• If the above applies, and still you don’t follow it – your invoice will not
be treated as a GST Invoice. It means
• you have made a supply without Invoice
• Goods would be liable to confiscation
•

For practice & learning
• User Manual on the site
• We are creating a WhatsApp group for help on e-invoicing. It will
remain open for 2 months
Note: The trial site has been closed. (https://einvoice1-trial.nic.in/)

Resources for learning

Sanjay Dwivedi
Advocate
9320 456 555
sanjay@srdlegal.in

GST E-Invoice: Understanding the Concept and Process

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