Comprehensive Guide to GST E-Invoice System Implementation (2024)

Introduction: Welcome to the realm of GST tax compliance, where the E-Invoice System revolutionizes the way businesses handle invoices. Mandated by the GST Council and implemented by the National Informatics Centre (NIC), this system ensures a standardized approach to Invoice Reference Number (IRN) generation. This article serves as your comprehensive guide to understanding, implementing, and benefiting from the E-Invoice System.

Detailed Analysis:

1. E-Invoice System Overview:

The E-Invoice System is in line with the latest e-invoice (IRN) schema published on the GSTN portal.
Notified taxpayers, based on specified turnover, must generate IRN for Invoices, Debit Notes, and Credit Notes for B2B and export transactions.

2. IRN Generation Process:

Taxpayers upload invoice details via Form GST-INV-01 for validation by the Invoice Registration Portal (IRP).
IRP returns the IRN with a signed invoice and QR code for printing on the issued invoice.

3. Cancellation and Verification:

Taxpayers can cancel the IRN if an active e-way bill is not present.
The system provides options to verify the authenticity of the IRN and signed invoices.

4. Accessing E-Invoice Portal:

Taxpayers can check their GSTIN’s IRN generation status via the ‘e-invoice status of Tax Payer’ option.
Voluntary registration and support channels are available for users not enabled or facing issues.

5. GSPs and ERPs Integration:

Taxpayers can integrate with GST Suvidha Providers (GSPs) and ERPs for seamless e-invoice services.
API integration options include direct integration, sister concern integration, and e-commerce operator integration.

6. Offline and API Modes:

The E-Invoice System offers two modes of IRN generation: Offline (bulk upload) and API (integrating with GSPs, ERPs, or direct integration).
Taxpayers can generate e-way bills along with IRN in one go or separately.

7. Testing and On-Boarding Procedures:

Before production, testing API integration on the sandbox system is mandatory.
Procedures for on-boarding to the production system for API integration are detailed for GSPs, ERPs, e-commerce operators, and direct integration.

Conclusion: The E-Invoice System brings efficiency to GST compliance, offering multiple avenues for IRN generation. Whether using offline tools, GSPs, ERPs, or direct integration, taxpayers can seamlessly navigate the process. Stay informed, test diligently, and embrace the future of tax compliance with the E-Invoice System.

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E-Invoice System

Welcome to the tax payers of GST to the e-invoice system. As per the GST Council direction, National Informatics Centre (NIC) has built the e-invoice system as per the latest e-invoice (IRN) schema published on the GSTN portal. As per the notification of GST (Notfn. No. 61 dtd: 30th July, 2020), this system has been enabled for tax payers based on specified turnover (as per data available in GST system).

The notified tax payers have to generate the IRN for the supplies/sales. That is, the IRN has to be generated for the documents of Invoices, Debit Notes and Credit Notes for B2B and export transactions. The tax payer has to upload the complete invoice details, prepared manually or through internal ERP/accounting system, as per Form GST-INV-01, and after due validations of the data, the IRP returns the IRN with the signed invoice and QR code back to the tax payer. The QR code has to be printed by the tax payer on the invoice being issued to the buyer. It may be noted that the IRN can be generated by the supplier only and not by buyer or transporter.

There is a facility to cancel the IRN, if active e-way bill is not there. That is, the e-way bill is not generated or the e-way bill generated and later cancelled, then the user is allowed to cancel the IRN.

The tax payer can also see the features like rules, notifications, help, manuals, Audio-Video materials, FAQs, etc. on the e-invoice portal.

By going to the e-invoice portal and selecting ‘e-invoice status of Tax Payer’ under Search option, on entry of the GSTIN, the system will indicate whether this GSTIN is enabled for the IRN generation.

If your Turnover is exceeding Rs 500 Crores but your GSTIN is not enabled, then you may register voluntarily by clicking on Registration->e-Invoice Enablement. Also, if your Turnover has not crossed Rs 500 Crores but you have been enabled for e-invoicing , then you may send mail to support.einv.api@gov.in.

The tax payer can also access the list of registered GSPs (GST Suvidha Providers) and ERPs , who have enrolled to provide the e-invoice services to the tax payers. This option available as ‘GST Suvidha Providers (GSP)’ and ‘ERP’ under search option.

One can upload the IRN generated and signed invoice file and get it verified on the portal for the authenticity of the IRN. For this option, select ‘Verify Signed Invoice’ under Search option.

There is a facility to login to the e-invoice system. Single Sign On system has been used to login to the e-way bill and e-invoice systems. That is, if the tax payer has the username and password created on the e-way bill system, then same can be used to login to this system.

If the tax payer has not registered in the e-way bill system, he can use the registration facility and register for the e-invoice system. Then system enables him automatically for both the e-way bill and e-invoice systems.

Presently, e-Invoice System provides the two modes of IRN generation – Offline and API. The following table provide the different methods involved in IRN generation based on the turnover of the tax payers. The notified tax payers can use these modes for the generation of IRN. The tax payers can also generate the e-way bill along with the IRN in one go or generate IRN and the e-way bill later based on the IRN. On generation of IRN, the system returns the signed invoice in the JSON format with the QR code. Then invoice can be issued to buyer along with QR code. Please refer to the Annexure for the sample copy of the invoice along-with QR code on it.

There is an option in the website to download a Mobile App (for Android and iOS) which may be used to verify the authenticity of the QR code and the contents printed on the Invoice. This app may be used by any taxpayers or tax officers or any external agencies like banks and other financial institutions for verifying the invoice.

The tax payer can also know his/her sister concerns, generating the IRNs and e-way bills using API, after logging into the portal. This helps him to tie up with his/her sister concerns for integration of API mode.

Before integration with the API on production system, the tax payer needs to do the testing of API integration on the sand-box system (https://einv-apisandbox.nic.in). In the sandbox system, the notified tax payer can register and understand the process of IRN integration and test the integration with his/her own system. The following procedures explain how to on-board on production system for API integration after completion of testing on sandbox.

The enabled taxpayers can use any of the following methods for IRN generation

Offline tool – Upload the invoices in standard format and generate the IRN in one go
API – Through GSPs integration – System-to-system integration using APIs through registered GSPs
API – Through ERPs integration – System-to-system integration using APIs through registered ERPs
API – Direct integration – System-to-System integration using API directly from Tax Payers system
API – Through enabled sister concerned GSTIN – System-to-System integration using API through the sister company of the Tax payers having same PAN. If it has been enabled for API.
API – Through e-Commerce integration – System-to-system integration using APIs through e-Commerce operators
E-Way Bill API enabled Tax Payers – System-to-System integration using API for already E-Way Bill enabled Tax Payers

Detailed Procedures

1. Using Offline Tool

Please go to the https://einvoice1.gst.gov.in portal and see the procedure for the preparation of the bulk upload request for IRNs at Help -* Tools -* Bulk Generation tools.
Once you have prepared the bulk upload request file with the invoices, please login at the https://einvoice1.gst.gov.in If you have registered in the e-way bill portal (https://ewaybillgst.gov.in), then you can use the login credentials (username and password) of the e-way bill system to login to the e-invoice portal. If you have not registered in the e-way bill portal, then you can register in the e-invoice portal at option Registration.
On logging into the e-invoice portal, select the e-invoice option and Bulk IRN option.
Now, upload your request file and generate the IRNs for your invoices.
After generation, the system will also provide the mechanism to download the IRN form with all the details.
In case of any errors, the system shows the errors with the requested invoices. You can correct them and request once again.

2. Using GSPs (GST Suvidha Providers)

Before starting to work on this, you need to test the API integration with the identified GSP in sand-box environment (https://einv-apisandbox.nic.in/). After testing, GSP has to submit the test summary report, as per the format provided under ‘On Boarding’ at sandbox portal, to the email einv.api@gov.in. After verification of the test summary report, GSP will be provided the production API details.
Please login at the https://einvoice1.gst.gov.in

If you have registered in the e-way bill portal (https://ewaybillgst.gov.in), then you can use the login credentials (username and password) of the e-way bill system to login to the e-invoice portal.