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Sushmita Goswami | May 10, 2022 | Views 76202

Central Excise Department & Tamil Nadu GST Released a booklet on “FAQ on e-Invoice”

Central Excise Department & Tamil Nadu GST Released a booklet on “FAQ on e-Invoice”

In the presence of Sh. Vivek Johri Chairman & all Members of CBIC, Shri. Tarun Bajaj Secretary Revenue GOI released a booklet on “FAQ on e-Invoice” in Tamil & English published by Chennai, which was released by Shri. Tarun Bajaj Secretary Revenue GOI during Annual Conference of (Pr)DGs/Chief Commissioners of CGST & Customs on May 06, 2022.

Q1. What is ‘e-invoicing’?

Answer. As per Rule 48(4) of CGST Rules, notified class of registered persons shall prepare an invoice by incorporating the Invoice Reference Number (IRN) and the QR-Code generated by uploading specified particulars in FORM: GST INV-01 on Invoice Registration Portal (IRP).

Such invoice containing, inter alia, the QR Code embedded with IRN (mentioning IRN separately, is optional), issued by the notified supplier to buyer is commonly referred to as ‘e-invoice’ in GST.

Please note that ‘e-invoice’ doesn’t mean generation of invoice on a Government portal or issue of invoice in pdf form.

Q2. How is ‘e -invoicing’ different from present system (normal invoice)?

Answer. There is no much difference between the e-invoice and a normal invoice. In the e-invoice system, the notified registered persons will continue to create their GST invoices on their own Accounting/Billing/ERP Systems, but it shall bear the QR Code embedded with IRN (mentioning IRN separately, is optional), pre-generated on IRP. In other words, the specified contents of the invoices will have to be first posted in FORM: GST INV-01 on IRP, to generate the said unique IRN with a QR Code. e-Invoice is nothing but an invoice issued to the receiver of goods/services by the supplier along with the QR Code . A GST invoice issued by the not i f ied supplier will be valid only with a valid IRN/QR-code.

The following flow chart indicates the process of generation of e-Invoice: –

For more detailed process, please go through https://einvoice1.gst.gov.in/

Q3. For which businesses, e-invoicing is mandatory?

Answer. e-invoicing is mandatory for the class of Registered Persons whose aggregate turnover (based on PAN) is more than the prescribed limit (as per relevant notification) in any preceding financial year from 2017-18 onwards. The effective date from which the e-Invoice was notified as mandatory for different class of Registered Persons is indicated hereunder:

Q4. What are the advantages of e-invoice for businesses?

Answer. e-invoice has many advantages for businesses such as:

  • Smooth ITC reconciliation by Auto-reporting of invoices into GST return;
  • Simultaneous generation of EWB
  • Utmost reliability (no need to doubt the genuineness- eliminates fake invoices);
  • Reconciliation problems are eliminated;
  • Standardisation & eliminates data entry errors;
  • Documents become tax compliant on real time basis;
  • Reduction of processing costs;
  • improve payment cycles;
  • thereby greatly improving overall business efficiency and ensure Ease of doing business.

Q5. What businesses need to do, to be e -invoice ready?

Answer. Businesses will continue to issue invoices as they are doing now. Necessary changes on account of e-invoicing requirement (i.e., to enable reporting of invoices to IRP and obtain IRN), will be made by ERP/Accounting and Billing Software providers in their respective software. They need to get the updated version having this facility

Q6. Can we have Multiple User Creation and administrator Option for Multiple Staff?

Answer. As you are aware National Informatics Centre (NIC) has released beta of version of ‘NIC-GST e-invoice Preparing and Printing’ (NIC-GePP) excel based Tool to assist the tax payers, who are not having the ERP solution, to enter invoice in web based form and print the e-invoice with QR code, after downloading the IRN from e-invoice portal. In this, main user can create sub user accounts with respective user’s mobile number mapped to it and use with GePP-Online, GePP-Offline and Bulk generation tool.

Q7. Will businesses now be required to generate e-invoices on the GST portal or the e-invoice portal or the IRN portal?

Answer. It is mandatory on the part of all notified registered persons to generate the IRN & QR code as detailed above, by posting the specified information in GST INV-01, on IRP; and they will continue to generate e-invoices on their internal systems, whether through ERP or their accounting / billing systems or any other application.

To Read More Download PDF Given Below:

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