#B2B Invoice QR Code

[irpportalnews]

E-invoice Printing: Process, Mandatory Fields, Modes of IRN generation

E-invoice Printing is one of the most significant aspects of e-invoicing after the mandate gets applicable to a taxpayer. Currently, the government has made e-invoicing mandatory for taxpayers with an AATO of Rs. 5 Cr. from January 1, 2023.

Under the e-invoicing mandate, the taxpayers' invoices need to be registered on the official e-invoicing portal. This portal is known as the Invoice Registration Portal (IRP) which will help taxpayers generate the invoice reference number (IRN) which will be unique for every single invoice that is being generated. E-invoice printing is one of the topics that taxpayers are most concerned about. In this article, we discuss everything related to e-invoice printing i.e. the process, mandatory and optional fields, generation etc.

E-invoice Printing - IRN & QR Code:

Under the e-invoice mandate, taxpayers will continue to generate their specific GST invoices (covered under the mandate) on their own with the help of their Accounting/Billing/ERP Systems. Once generated, the invoice data will now have to be sent to Invoice Registration Portal (IRP) if their business crosses the e-invoice turnover limit.

IRP then will verify and assign a number unique for that particular invoice using the hash algorithm under e-invoicing which is the Invoice Reference Number (IRN) along with a QR Code. QR code will be part of the signed JSON, returned by the IRP. It will be a string (not an image), which the ERP/accounting/billing software shall read and convert into QR Code image for placing on the invoice.

A B2B GST invoice will be valid only with a valid IRN. And before sharing it with the concerned parties, taxpayers need to print this IRN and QR Code on the invoice. Hence, understanding the nuances of e-invoice printing becomes important.

Mandatory fields to be printed on an invoice and an E-invoice As per Rule 46 of CGST tax rules 2017

Following fields are mandatory to be printed on the e-invoice as per Rule 46. Tax invoice referred to in section 31:

Name, address and Goods and Services Tax Identification Number of the supplier

A consecutive serial number not exceeding 16 characters, in one or multiple series, containing alphabets or numerals or special characters- hyphen or dash and slash symbolised as "-'' and "/" respectively, and any combination, unique for FY

Date of its issue

Name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient

Name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is Rs. 50,000/- or more

Name and address of the recipient and the address of delivery, along with the name of the State and its code, if such recipient is un-registered and where the value of the taxable supply is less than Rs. 50,000/- and the recipient requests that such details be recorded in the tax invoice

HSN code for goods or services

Description of goods or services

Quantity in case of goods and units or Unique Quantity Code thereof

The total value of the supply of goods or services or both

Taxable value of the supply of goods or services or both taking into account discount or abatement, if any

Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess)

Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess )

Place of supply along with the name of the State, in the case of a supply in the course of inter-State trade or commerce

Address of delivery where the same is different from the place of supply

Whether the tax is payable on reverse charge basis

Signature or digital signature of the supplier or his authorised representative

QR code, having embedded Invoice Reference Number (IRN) in it, in case invoice has been issued in the manner prescribed under sub-rule (4) of rule 48.

Read More: https://einvoice6.gst.gov.in/content/e-invoice-printing-process-mandatory-fields-modes-of-irn-generation/

[smartadmin]

Best GST Invoice Software

The invoicing option of Smart Admin links estimate/quote, invoice, receipt, and Credit/Debit to ensure accurate flow of data points in the overall invoicing process. This will ensure zero error in all statutory filings connected with invoicing. The invoice management software captures data points associated with each of the documents and numbers it properly. The Import and Export transactions as well as SEZ transactions of both products and services are listed in the process.

Need for using GST Invoice Software

GST Invoice Software has been designed to meet the challenges as posed by GST implementation and its frequent updates. The implementation of GST has brought multitude of challenges to small and medium business owners. The larger businesses were fully equipped to meet challenges because of their affordability to invest in costly software whereas for small businesses, it turned out to be a nightmare. The organized sector with its regular stream of tax payment process was least affected by GST and the need for GST invoice generator. The small and medium segments were bogged down by the burden of generating GST Compliant Invoice and fear of reporting wrong data. In addition, there were compelled to route transactions through banking channels to meet the requirement of large suppliers. This posed additional challenges of keeping record of each and every transaction and its proper reporting.

Smart Admin stepped into this need and developed invoice management software to match up with the requirements of GST filing and minimize errors in transactions. The billing software has been designed taking into account of the level of expertise of common man. The Smart Admin Invoice Software can be operated by anyone who can handle Gmail and WhatsApp.

Further, Smart Admin has been configured to handle the future requirements of e-invoicing as if it is going to be implemented by GST Council for B2B transaction at any time in future. With such implementation, the e-invoice generated needs to be validated at Invoice Registration Portal (IRP). This will generate a unique Invoice Reference Number (IRN) and digitally sign the e-invoice and also generate a QR code. The QR Code will contain vital parameters of the e-invoice and return the same to the taxpayer who generated the document in first place. The IRP will also send the signed e-invoice to the recipient of the document on the email provided in the e-invoice. Smart Admin GST invoice software has the option to update the invoice with IRN as generated and send the same to buyers once the feature has been implemented at any time .

The options as given for GST Invoicing Software India are expected to speed up the filing process and minimize errors. With Smart Admin, users can go for multiple GST invoice formats, receipt and cr/dr vouchers according to requirements for generating Tax Invoices under GST.

The invoice management software is linked with all other transactions to avoid duplication of efforts and missing of entries. Once you subscribe for the mobile app, then invoice can be generated on the go. Invoice will be sent to the recipients over email or SMS instantly. If you are looking for best GST Invoice Software, then we can confirm that Smart Admin is one of the best invoicing software India, a solution for you.

[massivesaladphilosopher]

GST E Invoicing, Process and Its Benefits

What is e-invoicing under GST

GST e-invoicing is a system that electronically authenticates B2B invoices through the Goods & Services Network (GSTN). Under the system, an identification reference number (IRN) will be issued against every invoice by the Invoice Registration Portal (IRP).

This system is not built to prepare and generate invoices on the GST portal. Instead, it involves submitting already generated invoices on a common e-invoice portal.

Information from the invoices will be transferred from IRP to the GST portal in real-time. This will eliminate the need for manual inputs while filing GST returns.

Process of getting a GST e-invoice

‘e-Invoicing under GST’ does not mean invoice generation by a government portal. Taxpayers will continue to create GST invoices through their preferred method. These invoices will be uploaded to IRP. This portal will generate a unique IRN, digitally sign it, add a QR code, and return the invoice.

Benefits of e-invoicing under GST

Technological advancements, increased internet penetration with the availability of computer systems at economical prices will make e-invoice – a popular choice for businesses. 

e-Invoicing has many advantages for businesses in India. 

Reporting B2B invoices in the e-invoice form will reduce reporting of the same in multiple forms like GSTR-1, e-way bill, etc

No tax evasion as a complete trail of B2B invoices will be available

System-level reconciliation of input credit and output tax

Auto-population of invoice details into GST return and other forms (like an e-way bill)

Mitigation of fraud invoices 

Reduction in processing costs and disputes 

Improvement in payment cycles, and 

Advancement in overall business efficiency

[ebizfilingindia-blog]

E-Invoicing Under Goods and Services Tax (GST)

Introduction

E-Invoicing under the Goods and Services Tax (GST) regime is a digital invoicing system implemented for specific categories of taxpayers in India. It enables businesses to register and obtain digitally signed Electronic Invoices within the GST framework. In this article, we will discuss all about e-invoicing under GST, who are liable to issue e-invoice, who are exempted to generate e-invoice, benefits, etc.

What is E-Invoicing under GST?

E-Invoicing under GST is a system implemented for certain taxpayers where they can register and obtain digitally signed Electronic Invoices within the GST framework. This setup is specifically designed for Business to Business (B2B) transactions, where invoices are electronically authenticated by the GST Network through the common GST portal. The Invoice Registration Portal (IRP) issues a unique identification number for each invoice, which is managed by the GSTN.

Who is liable to issue E Invoice under GST?

The liability to issue E-Invoices under GST falls upon every registered taxpayer whose aggregate annual turnover has exceeded Rs. 20 Crore in any financial year since 2017–18. It’s important to note that this aggregate turnover includes the turnover of all GSTINs associated with a single PAN in India. The E-Invoice information is transferred from the E-Invoice portal to both the GST portal and E-Way bill portal in real-time. This eliminates the need for manual data entry during GSTR-1 Return Filing and generation of part-A of the E-Way Bills, as the information is automatically transferred from the Invoice Registration Portal (IRP) to the GST portal.

Documents required for E Invoicing

The documents that need to be reported to the Invoice Registration Portal (IRP) for E-Invoicing purposes are as follows:

Invoices issued by the supplier.

Credit notes issued by the supplier.

Debit notes issued by the recipient.

Any other document as notified under the Goods & Service Tax Act that requires reporting as an E-Invoice by the document creator.

Process to Get E Invoicing under GST

Here is the procedure to generate an E-Invoice under GST:

Generate a regular invoice on the software: Provide all the necessary details such as billing name and address, supplier’s GST number, transaction value, item rate, applicable GST rate, tax amount, etc.

Raise the invoice on the ERP software or billing software: After creating the invoice, upload the invoice details, especially the mandatory fields, to the Invoice Registration Portal. This can be done using a JSON file or through an application service provider (such as an app or a GST Suvidha Provider) or directly via API.

Generate the Invoice Reference Number (IRN): The Invoice Registration Portal will validate the key details of the Business-to-Business invoice, check for any duplication’s, and generate an Invoice Reference Number (IRN) as a unique identifier.

Create a QR code in Output JSON: Once the IRN is generated, the IRP digitally signs the invoice and creates a QR code in Output JSON format. If the supplier has provided their email ID in the invoice, they will receive an intimation of the E-Invoice generation via email.

Send details to the GST Portal and E-Way Bill Portal: The Invoice Registration Portal sends the authenticated invoice details to the GST Portal, which auto-fills the seller’s GST Return form (GSTR-1). Additionally, the details are sent to the E-Way Bill Portal for seamless integration with the E-Way Bill generation process.

Benefits of E-Invoicing under GST

E-Invoicing under GST streamlines data reconciliation, reducing mismatch errors between invoices and returns.

E-Invoices created on one software can be seamlessly read by another, promoting interoperability and minimizing data entry mistakes.

E-Invoicing allows for real-time tracking of invoices created by suppliers.

Relevant invoice details are automatically populated for filing GSTR-1 and generating Part A of E-Way Bills, simplifying the GST Return Filing process.

E-Invoicing facilitates faster availability of genuine ITC, enabling businesses to utilize it more efficiently.

E-Invoicing provides detailed transaction-level information, reducing the likelihood of audits and surveys by tax authorities.

To file your GST return online, gather the necessary documents and log in to the official GST portal. Select the appropriate GST return form, enter your business and invoice details, and validate the form before submitting it. If there are any tax liabilities, make the payment online. After submission, you’ll receive an acknowledgment receipt. Verify the return if necessary through digital signature or electronic verification code. Online filing provides convenience and accuracy for meeting GST obligations.

List of the Taxpayer that are not required to generate e-invoicing under GST

The following categories of taxpayers are not required to generate E-Invoices under GST, regardless of their turnover:

Insurance companies, banking companies, and financial institutions, including NBFCs.

Goods Transport Agencies (GTAs).

Registered taxpayers providing passenger transportation services.

Registered taxpayers providing services related to admission to the exhibition of cinematographic films in multiplex services.

Conclusion

The E-Invoicing system only requires these taxpayers to report their invoices electronically on the Invoice Registration Portal. So, while the reporting process is digital, the physical printing of invoices with logos can still be maintained.

[dssoftweb]

 Best Connected Service to Generate e-Invoice in Ghaziabd

Generating and printing e-invoice is amazingly simpler with TallyPrime’s connected services. Tally being a recognized and ISO certified GSP (GST Suvidha Provider), TallyPrime directly integrates with IRP portal to seamlessly generate e-invoices.

.Auto-generate e-invoice instantly. Print IRN and QR code automatically with no changes to the invoicing process that you follow. .Flexibility to send individual/selective/ bulk invoices to IRP. .Generate e-invoice along with the e-way bill, wherever applicable. .E-Invoice report to get a bird’s-eye view on the status (generated / pending / cancelled).If you are a business with an annual turnover exceeding 5 crores, e-invoice is applicable, and you need to electronically upload all B2B and B2G invoices to the portal. You need to generate the e-invoice in the required format and upload it to the IRP portal.

e-Invoicing mandates that an invoice remains valid only if it has IRN and QR code that is authenticated by the IRP (Invoice Registration Portal). Invoicing is a key process in every business, it’s a necessity to have business management software that will help you seamlessly generate e-invoices without impacting the way you use to operate your business.

Businesses using ERP/ business management software that seamlessly connects to the IRP system via GSP, and automatically prints the QR code and IRN on the invoice, will find it easy to manage e-invoice requirements without many changes to the business process. Read  to know the change in invoicing practice and things for smooth adoption of e-invoice.

[digiblogs]

Top B2B Fintech Companies in India that grew rapidly in 2023

Due to the proliferation of payment startups in the modern era, B2B transactions have improved in terms of convenience and security. Some of the most well-known B2B payment startups in India are the ones listed below:

1: BharatPe- A single BharatPe QR code may be used by small to midsize business owners to accept payments across all UPI applications, according to BharatPe, a B2B fintech provider. The startup also provides loans to business owners and praised by many entrepreneurs like Siddharth Mehta IL&FS, former director. Bhavik Koladiya, Ashneer Grover, and Shashvat Nakrani launched it in 2018, and its main office is in New Delhi. Recently, BharatPe collaborated with NBFCs on a project named the "12% Club". Through this program, consumers will have the opportunity to invest in BharatPe and earn interest rates of up to 12% without being subject to any lock-in periods. Additionally, consumers are able to borrow money at a 12% interest rate.

2: Emkash- EnKash is a platform for managing B2B payments and providing financial support. With the help of this program, a business may monitor its cash flow, invoices, and—most importantly—track payments from customers or suppliers. It facilitates easy connections between businesses, corporations, and credit providers. Hemant Vishnoi established the business in 2016. The SBM EnKash RuPay business card, the most comprehensive business credit card ever, will be released in 2020 thanks to a collaboration between SBM Bank, YAP, RuPay, and EnKash.

3: Airpay- Another well-known B2B payment company from India, Airpay, makes it simple for retailers and eCommerce businesses to accept contactless payments. Amit Kapoor, Kunal Jhunjhunwala, and Rohan Deshpande established Airpay in 2012. The business's main office is in Mumbai. As per Siddharth Mehta Bay Capital CIO says, the payment platform offers features including open banking, financial services, contactless payments, mobile POS, net banking, digital payments, and financial inclusion.

[einvoicesoftware]

Reliable & Complete E-Invoicing Solution 

Electronic invoicing or GST e invoicing software in India is a method for creating invoices and it enables the invoices created through one software program that is accessible by the other software, it has also reduced the need for further data entry and the labor-intensive manual process.

It is an invoice that has been produced using a single standard format so that others can share the electronic data or ensures information consistency.

E-invoicing software provides a reliable and complete invoicing solution, it provides the features for generation, tracking, or managing the invoices.

Unibill App is an GST e invoicing software in India that helps in generating the E invoices in a single click, also it automatically prints IRN or invoice reference number and QR code with the invoicing software.

It is certified software which means your invoices can be directly uploaded to the IRP portal to generate the E invoices seamlessly.

There are so many benefits of the Unibill App, the best GST e-invoicing software as it reduces the reporting of the same invoice details multiple times, it helps in real-time tracking of invoices, confirms the ITC eligibility, it prevents errors and fraud, it saves time and effort to file returns or it helps in reducing the reporting of same invoice details in multiple times.

There are some key factors to be considered while choosing a GST E-invoicing software like whether it can generate bulk E-way Bill invoices seamlessly whether it can generate E-way Bills along with E invoices as applicable or whether it has the flexibility to use the offline mode to generate the E invoices that deals in possible network issues.

Electronic invoicing is a system in which all B2B invoices are uploaded electronically and then authenticated by the designated portal.

Post authentication, a unique invoice reference number is generated along with the QR code and that needs to be printed on the invoice.

Electronic invoices apply to all the businesses that are registered under GST and those that issue B2B invoices in a phased manner as notified by the central government.

Therefore there are many benefits of E-invoicing, first, it can curb tax evasion and with this the chances of editing invoices are low.

For More Information

Call us on +91-7302005777

Or visit https://unibillapp.com/

[legalbusinessservice]

E-Invoice GST - A Simple Guide

Introduction :

During its thirty seventh meeting, which passed off on September 20, 2019, the GST Council made a advice to put in force digital invoices (additionally recognised as "e-invoices") in GST in a innovative manner. E-invoicing turned into first made relevant as of October 1, 2020, however handiest for registered agencies with combination sales of Rs. 500 crores or more. Here know about Gst registration in andhra pradesh and Gst Invoice

Since then, the whole turnover has been steadily reducing with the intention to accommodate the finest wide variety of taxpayers for the implementation of e-invoicing with inside the following manner:

Notes: 

E-invoicing policies end up powerful starting with the 2017–18 financial yr while the aforementioned combination turnover threshold boundaries are crossed in any of the preceding monetary yr(s). Therefore, the whole turnover restrict for the modern financial yr must now no longer be taken into consideration.

Even if their annual combination turnover is extra than the required restrict, sure entities are exempt from the responsibility to generate digital invoices. These entities consist of SEZ units (however now no longer developers), insurers or banking groups or monetary institutions, authorities departments or neighborhood authorities, passenger delivery provider providers, and invoicing in instances wherein offerings are rendered withinside the shape of admission to the exhibition of cinematograph movies in multiplex theatres.

Only applies to taxable income of products or offerings made among agencies (B2B) in DN/CN export transactions.

Not applicable to Business-to-Consumer (B2C) Supplies, Exempted Supplies (Bill of Supply), Receipt Vouchers (on Advances Received for Supply of Services), Refund Vouchers (on Advances Received for Supply of Services), Payment Vouchers, and Self-Invoice (for RCM Liability Received from an Unregistered Person), and ISD Invoice.

LIST OF COMPLIANCE TO BE FOLLOWED

The registered character who's required to apply e-invoicing ought to first generate a tax bill with certain details consistent with e-schema INV-01 the usage of the taxpayer's personal account and billing software, then convert the tax bill right into a JSON record, and finally, add the record to the devoted Invoice Registration Portal ("IRP") that turned into released via way of means of the authorities. 

After that, IRP will generate a one-of-a-type e-bill reference wide variety together with a Quick Reference ("QR") Code and a digitally signed JSON record, which it'll then ship to the involved supplier. Additionally, IRP will push the records to the GST Portal for auto-populace of date in GSTR-1 (outward deliver statement), in addition to the E-waybill portal for the technology of an e-manner bill.

[artimaurya]

With E-invoicing already implemented for businesses with a turnover exceeding 10 crores from 1st October 2022, and from 1st January 2023 e-invoicing will be applicable for businesses with a turnover exceeding 05 crores.

These businesses must electronically upload all B2B and B2G invoices to the portal. The e-invoice needs to be created in the appropriate format and uploaded to the IRP site. The invoice data will be verified by the IRP portal, which will subsequently return the file with the IRN and digitally signed QR code. 

You can easily generate E-invoice with a single click through AlignBooks E-Invoicing Software! 

Contact us Now at: 8802998998 Click here to book your demo now! https://buff.ly/3UDvmw9

[business-in-indonesia]

What Makes e-Invoicing Best in Indonesia?

E-invoicing or electronic invoicing can be described as a process that is used primarily by B2B (business-to-business) companies in Indonesia as well as everywhere else in the world. In this process, they upload their invoices digitally at portals that are authenticated by definite tax networks. For every invoice that is generated in such a way, an IRN (invoice reference number) is generated with a unique QR (quick response) code. The main reason why companies use such a method is to make sure that there is a uniform format or system for doing such things across companies in all industries. This makes interoperability simpler.

It saves time 

This is a major benefit of using the best accounting software systems. Since this is a digital process it does not take more than a couple of minutes for an invoice to be generated. Previously, the traditional methods of generating invoices took a lot of time to be generated. Using them for filing taxes was a time-consuming affair as well. These digital processes and systems have now brought down the time needed to process, send, track, and approve invoices. This in turn has helped companies become more productive as well as employees now have more time to focus on other critical areas of the business.

It increases accuracy 

This is something that you can always trust inventory management software to do. Since these systems reduce human errors they are as accurate as they are. Here you do not have to enter data manually and this is why there is little room for any error to happen with such work. These systems take information straight from the e-invoices. It also helps that the billing systems these days have the necessary information. Together these factors make sure that no errors happen during the process of invoicing.

You can be sure that when you buy your e-invoicing system from a top organization in the domain such as Tally Prime it would make such work even easier than it already is. Such companies make business accounting software that comes with e-invoicing capabilities. You can generate e-invoices quickly and in bulk as well – and all this without any problem at all. The best software systems in this context are also capable of generating e-way bills based on your e-invoices and all this is done just as you would need it to happen. The finest aspect of such software is that it can operate offline as well.   

[irpportalnews]

Crossed the e-invoicing turnover limit? Here are 5 things to do next!

E-Invoicing Turnover Limit is the base criteria on the basis of which a company falls under the E-Invoice Mandate. Recently, the government has further reduced the e-invoicing turnover limit covering companies with Annual Aggregate Turnover of Rs. 5 Cr. and above.

As per the GST notification 10/2023, from August 1, 2023 companies having AATO of Rs 5 Cr and above need to register their B2B invoices and other specific documents on IRP and get Invoice Registration Number in return. This is an attempt to accommodate MSMEs under e-invoicing and streamline the process while bringing in transparency and reducing tax evasion. 

This article will help you to know if you have crossed the e-invoicing turnover limit and if you have recently crossed or are about to cross the e-invoicing threshold limit, then what are the next steps you need to carry from here on…

What is the turnover limit for e-invoicing?

Introduced in a phased manner, e-invoice under GST is based on the Aggregate Annual Turnover (AATO) of companies and businesses in India.

The first phase addressed companies with a turnover of over INR 500 crores. This went live from 1st October 2020. The next was for the ones that turned a revenue over of more than INR 100 crores. This went live from 1st January 2021. The third phase, which went live in April 2021, was for the companies with a revenue of over INR 50 crores. Earlier this year, the fourth phase, launched in April 2022, was effective for companies that have turnover over INR 20 crores. Finally, the fifth phase was for companies with a turnover of over INR 10 crores going live from 1st October 2022.

Steps to take after your business crosses the e-invoice turnover limit

1. Familiarize your Accounts Department with E-invoicing

Prior to the e-invoice applicability, all your B2B and B2C invoices may have had a similar common format that is followed by Indian businesses across the country with the required data fields. However, after crossing the e-invoicing turnover limit, you cannot carry out generating invoices in your usual manner. There is a standard procedure that needs to be followed. There are rules regarding the data fields and most importantly the IRN (Invoice Reference Number) and QR Code.

So, the first step will be to familiarize your accounts department with the e-invoicing mandate, its rules and regulations, about e-invoice printing, data fields etc. The change is massive and thus, a dynamic implementation will be made possible by having a thorough understanding of the e-invoice issuance, e-way bill production, and GST return filing processes.

2. Register yourself on the Invoice Registration Portal

Once your business crosses the e-invoicing threshold, you will automatically get enabled on the official GSTN portal. After the enablement, you need to register yourself on an IRP (Invoice Registration Portal) like IRIS IRP.

Note: In some cases, your business may not get automatically enabled on the official GSTN website. In that case, you need to create an account and enable yourself on the GSTN portal if your business falls under the e-invoicing threshold.

3. Verify and Prepare your Systems

Now that you have registered yourself on the invoice registration portal, it is also super important to check if your accounting and billing systems are ready for e-invoicing under GST. Before sending your invoice data to the IRP, you need to check if all the data is correct in order to avoid errors.

So, make sure your tax rates, HSN code etc. are updated in your systems. All the mandatory e-invoice data fields should be filled appropriately. Another major activity is that you will have to have a separate set-up for your B2B and B2C invoices. This is because e-invoicing is applicable to only B2B and export invoices so you must segregate your B2B and B2C invoices in your billing systems so as to avoid confusion.

Read This Full Article at e-invoice turnover limit

[gsthead]

QR Code: The new identity of a B2B invoice

[digitalashu4030]

Complete F&Q All e-Invoicing Software

Q-1: What is e-Invoicing?

Answer: Electronic invoicing or e-invoicing is an invoicing process that allows other software to access invoices generated by software, eliminating the need for re-entry of data or errors. In less difficult words, it is an invoice created in a standard format, whereby the electronic information of the invoice can be shared with other people, which guarantees the compatibility of the information.

Q-2: What is the electronic invoicing process?

Answer: There aren't many changes; Companies can continue to generate their invoices from their existing software. To ensure a certain level of standardization, only one standard format is used, the e-invoicing schema. These systematic invoices are prepared by the taxpayer. When creating the invoices, you must report them to the GST Invoice Registration Portal (IRP). The portal then generates a unique invoice reference number and adds the digital signature along with the QR code to the e-invoice. The QR code contains all the information required for the electronic invoice. After this process, the electronic invoice is sent back to the taxpayer via the portal. IRP will also send a copy of the signed invoice to the seller's registered email address.

Q-3: Will the electronic invoice format be the same for all categories?

Answer: All companies/taxpayers that must pay GST must issue electronic invoices using the same scheme established by GSTN. The format has required and non-required fields. All taxpayers must complete the required fields and non-required fields are used as required.

Q-4: Is e-invoicing mandatory?

Answer: Electronic invoicing is mandatory for all companies with an annual turnover of Rs. Rs. 100 crores or more from 1st January 2021. Previously it applied to companies with a turnover above the limit of Rs. 500 million crores.

However, e-invoicing does not apply to the categories listed below, regardless of commercial invoicing, as per CBIC Notice No. 13/2020- Central Rate:

. An insurance company or a banking company or financial institution, including an NBFC . A Freight Transport Company (GTA) . A registered person offering passenger transportation services. . A registered person who provides services by way of admission to the exhibition of motion pictures in multiplex services . One SEZ unit (excluded by CBIC Report No. 61/2020 – Central Tax)

Q-5: What are the advantages of electronic invoicing? Answer: These are some of the benefits of electronic invoicing:

. Report B2B invoices once during generation, reducing reporting in multiple formats. . Most of the data on the GSTR-1 form can be kept ready to send while using the electronic billing system. . E-Way invoices can also be easily created with electronic invoice data. . There is a minimal data reconciliation between the books and the GST returns submitted. . Real-time tracking of invoices generated by a supplier can be enabled, along with faster availability of input tax credits. It will also reduce input tax credit verification problems. . Better management and automation of the tax declaration process. . Reduced fraud as tax authorities also has real-time access to data. . Elimination of false GST invoices that are generated.

Q-6: What deliveries are currently covered by e-invoicing? Answer: Electronic invoicing currently applies to:

. Deliveries to registrants (i.e. B2B deliveries), . Deliveries to ZEE (with/without payment of taxes), . Exports (with/without payment of taxes) and exports considered,

made by the Class of Notified Taxpayers.

Q-7: How will the e-invoicing model work? Answer: Under the e-invoicing model, companies will continue to issue invoices in their respective ERPs, as has been the case in the past. Only the standard, schema, and format for creating invoices are specified to ensure a certain level of standardization and machine-readability of these invoices. The preparation of the invoice is the responsibility of the taxpayer.

As it is generated, it must be reported to the GST Invoice Registration Portal (IRP). The IRP generates a unique invoice reference number (IRN) and adds the digital signature for the e-invoice along with the QR code. The QR code contains important parameters of the electronic invoice and sends it back to the taxpayer who created the document. The IRP also sends the signed e-invoice to the seller to the registered email id.

Q-8: What types of fields are there in an electronic invoice? Answer: The data of the fields marked as "required" must be entered.

. A required field that has no value can be reported as null. . Fields marked as "Optional" may or may not be filled out. They are only relevant to certain companies and only relate to certain scenarios. . Some sections of the electronic invoice marked as "Optional" may contain mandatory fields. For example, the E-Way Billing Details section is marked as Optional. However, in this section, the Transport Type field is required.

Q-9: Does the e-invoice need to be signed again by the supplier? Answer: The provisions of Rule 46 of the Central Goods and Services (CGST) Rules, 2017 apply here. According to Rule 46, the signature/digital signature of the supplier or his authorized representative is required while issuing invoices. However, a proviso to Rule 46 states that the signature/digital signature shall not be required in the case of issuance of an electronic invoice that is by the provisions of the InformationTechnology Act, 2000. Hence, it has been interpreted that in the case of e-invoices, a supplier will not be required to sign/digitally sign the document.

Q-10: What are the options for receiving electronic invoices registered in the IRP?

Answer: Several ways to record electronic invoices are provided in the Invoice Registration Portal (IRP). Some of the suggested modes are-

. Web-based, . API based, . Based on offline tools and . based on GSP.

Q-11: What is the final threshold for e-invoicing?

Answer: In a bid to step up measures against tax evasion, the government announced last week that GST e-invoicing will be mandatory for companies with a turnover of more than Rs 10 crore from October 1, down from the current Rs 20 crore, which will bring in another 0.36 million businesses in digital reporting.

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Everything You Need to Know About Invoice Reference Number (IRN)

E-invoicing is a cutting-edge technique in which invoices are created in an electronic format. To enable electronic invoicing, the GST Council established electronic invoicing. Now, invoices issued after verification through the invoice registration portal (IRP) are identified by their unique Invoice Reference Number (IRN). After invoice confirmation, IRP labels the electronic invoice, generates a QR code, and sends it to the vendor. These features improve the invoice's distinct identification. Tax authorities can discover these invoices using this information even if they are offline.

 What Is an Invoice Reference Number (IRN)?

Let's begin by defining an invoice reference number (IRN). IRNs are defined as distinct numbers in the new e-invoicing system that are generated for invoices by (invoice registration portal). The method will also make sure that the vendor will not submit the same invoice more than once throughout the course of the year. Invoices issued under GST can also be digitally converted using the invoice reference number. The original physical invoice copy could be replaced with the IRN. If your carriers frequently transfer significant quantities of items and values, carrying a paper invoice can ease your strain and relieve you of the duty of maintaining physical copies. It helps reduce waiting times at checkpoints, improves the surveillance of the items being transported to tax officials, and lessens the risk of loss.

  How does Invoice Reference Number (IRN) Work?

The upload of GST INV-01 to the site is required for invoice reference number (IRN) generation. It asks for details on the person who will receive the item as well as the consignee's address, name, and the state as well as the state's code and GSTIN. A description of the item, along with HSN, the discount, the quantity, the tax amount, and the tax-deductible value, are additional requirements.

 To authenticate each invoice you generate through the site under the brand-new electronic invoicing model, the government would generate an invoice reference number (IRN). Additionally, this IRN will be required for invoices and any other transaction that needs to reference an invoice. The IRN will be generated using a variety of systems.

  Key Requirement for Generating an IRN

Here are some most important requirements for generating an invoice reference number (IRN).

 1.      The document date must be lower than or equal to the current date.

 2.      You should only request an e-invoice for the transactions listed below.

 ·        Invoices for business-to-business (B2B) transactions

·        Invoices for business to government (B2G).

·        Invoices for Business to Export

·        Invoices for Reverse Charges

·        Supplies obtained from an e-commerce operator

 3.      A supplier must make sure that each invoice in his ERP/manual system receives a special invoice number that is generated for the entire fiscal year.

 4.      The tax payer's system can produce and send the Invoice reference number (IRN) based on the supplier's GSTIN, the document type, the financial year and the document number.

 5.      In other words, if an IRN has previously been generated on a specific type of document and the supplier's document number for the financial year, another IRN cannot be issued on the same combination.

 6.      Each product must have a valid HSN code that is at least 4 digits long. For example, products of the goods kind must have 4, 6, or 8 digits, but products of the service type must have 4, 5, or 6 digits.

 7.      Tax rates are being verified. Only tax rates that are acceptable will be approved.

  How is an Invoice Reference Number (IRN) Generated?

Buyers or recipients can validate an e-invoice regardless of whether it is connected to the IRP by utilizing these things after providing an invoice reference number (IRN), which is issued after an invoice, is registered with the IRP, and a signature QR code. However, the user must download the mobile application with a QR code in order to confirm the validity of the invoice sent to them.

 Invoice reference number (IRN)

helps in the prevention of ITC fraud, tax evasion, and scams. When it comes to E-invoicing, the main goal is to eliminate systemic tax evasion. Additionally, it will make sure that all business-related sales transactions are recorded in GSTN.  This makes sure that no illegal transactions take place and that inflated sales-related illegal ITC claims are challenging to identify.

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 Best Connected Service to Generate e-Invoice in Delhi 

Generating and printing e-invoice is amazingly simpler with TallyPrime’s connected services. Tally being a recognized and ISO certified GSP (GST Suvidha Provider), TallyPrime directly integrates with IRP portal to seamlessly generate e-invoices.

.Auto-generate e-invoice instantly. Print IRN and QR code automatically with no changes to the invoicing process that you follow. .Flexibility to send individual/selective/ bulk invoices to IRP. .Generate e-invoice along with the e-way bill, wherever applicable. .E-Invoice report to get a bird’s-eye view on the status (generated / pending / cancelled).If you are a business with an annual turnover exceeding 5 crores, e-invoice is applicable, and you need to electronically upload all B2B and B2G invoices to the portal. You need to generate the e-invoice in the required format and upload it to the IRP portal.

e-Invoicing mandates that an invoice remains valid only if it has IRN and QR code that is authenticated by the IRP (Invoice Registration Portal). Invoicing is a key process in every business, it’s a necessity to have business management software that will help you seamlessly generate e-invoices without impacting the way you use to operate your business.

Businesses using ERP/ business management software that seamlessly connects to the IRP system via GSP, and automatically prints the QR code and IRN on the invoice, will find it easy to manage e-invoice requirements without many changes to the business process. Read  to know the change in invoicing practice and things for smooth adoption of e-invoice.

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ZATCA Approved E-Invoicing (Fatoorah) Rolling Out In KSA

What is E-invoicing (Fatoorah)?

E-invoicing is a process that generates electronic invoices to issue and store them electronically. ZATCA — The Zakat, Tax, and Custom Authority is rolling out the first phase of e-invoicing in the KSA, mandating businesses to adopt it from December 4, 2021. The invoice processing, credit notes, and debit notes in a structured electronic format among seller and buyer will become easy with e-invoicing.

All KSA VAT taxpayers can issue e-invoices for VAT through the electronically integrated system. Not all the copied or scanned paper invoices are e-invoices. E-invoices are not editable after being generated. You can generate credit and debit notes that are VAT compliant regarding the original invoice.

E-invoicing standardizes the business transactions, ensuring the whole process works efficiently and securely. Only credit notes are issued if a buyer returns a product, and there is no option to change the original invoice.

All businesses will issue e-invoices for sales made within the country and exports made from KSA.

E-invoices are not mandatory for;

Imports in KSA

VAT exempted supplies; and

Relevant payments.

Why E-invoice is Introducing in KSA?

E-invoicing (Fatoorah) in KSA is rolling out to enable businesses to work more securely and effectively. This move aims to integrate business data with ZATCA to make the trading system as transparent as possible. The government standardizes the way invoices generate with a machine-readable format. After verifying the e-invoices (Fatoorah) from the ZATCA portal, there will be more chances to detect fraudulent activities. This information helps tax authorities not to conduct audits frequently.

The benefits of e-invoicing include a better experience for the buyers and sellers, as follows:

Streamlined e-invoicing will minimize the chances of slip-ups for business owners.

Real-time invoice generation for the tax proceeds added.

High data security

Fewer chances of scams with an aligned e-invoicing system for validating invoices, resulting in competition and improvement of trade.

Guidelines for ZATCA Approved E-invoicing (Fatoorah) in KSA

The e-invoicing provisions will be valid for all taxable goods and services that are subject to VAT.

E-invoicing (Fatoorah) will be for all B2B, B2C, and B2G transactions.

Printed copy to be provided separately.

All VAT registered business owners within KSA and third parties issuing tax invoices on behalf of a taxable person will mandate the e-invoicing (Fatoorah) process.

The standard language for e-invoicing will be Arabic and English.

E-Invoicing (Fatoorah) Implementation Phases in KSA

Phase One (Generation Phase)

Taxpayers can now generate and store e-invoices, from December 4, 2021. In this phase, you will have access to an e-invoicing (Fatoorah) system compliant with ZATCA.

The following fields are mandatory for e-invoicing:

Seller’s name

VAT registration number

Time

VAT total; and

Value of invoice inclusive of VAT

You do not need to share data and invoices with ZATCA in the generation phase.

Phase Two (Integration Phase)

Phase two will execute in different stages for targeted taxpayer groups. Starting from January 1, 2023, you will be required to integrate e-invoices with the ZATCA system for verification. Integration notification from ZATCA will be received six months in advance.

The integration phase will be more about technical requirements. Your system needs to connect with external systems using APIs and generate a UUID (Universally Unique Identifier), a digital signature, a unique number to differentiate invoices, and a cryptographic stamp.

Types of E-invoices

Tax Invoice

Electronic tax invoices are for B2B and B2G transactions.

Phase 1

Invoices will get issued to buyers in a specific format.

Phase 2

Tax invoices will get processed by ZATCA and stamped, cryptographically.

If the buyer is VAT registered, add the VAT registration number to the invoice; and

QR code is optional.

Simplified Tax Invoice

Simplified tax invoices in phase one are for B2C transactions. Buyers won’t need to use the invoice for input VAT deduction. In phase one, you share simplified e-invoices with customers. All e-invoices should be reported to ZATCA within 24 hours with a QR code.

How will the E-invoicing (Fatoorah) Process Work in KSA?

E-invoicing is more secure and effective. Here’s what you are required to do for each transaction:

Use a compliant e-invoicing system to issue the e-invoice with all the mandatory fields.

Issue a copy to the buyer. In phase two, you forward the invoice to ZATCA’s portal and get it validated.

Save the e-invoice in the system for the future.

Migrating to a cloud-based solution for e-invoicing features will make data storage efficient.

The Kingdom of Saudi Arabia takes a step toward implementing electronic invoicing across the country. All taxpayers must equip themselves with an e-invoicing (Fatoorah) system complying with generation and integration phase requirements.

Dynamics Solution and Technology is a certified Microsoft Gold partner company delivering Microsoft Dynamics 365 Solutions in the UK, Asia (Malaysia, Pakistan, India), and Gulf countries (UAE, Saudi Arabia, Bahrain). We develop and deploy effective business solutions that meet clients’ requirements.

To speak to our specialists, contact us at KSA: +966 566 953 627, UK: +44 20 8133 9686, and UAE: +971 545 127 668 or email us your query at info@dynamicssolution.com or visit dynamicssolution.com