e-invoice system-gst

e-Invoice System-GST

Dr. B. V. Murali Krishna,

Addl CCT(e Governance), Karnataka

e-mail: [email protected]

e-mail: [email protected]

Mobile: +9198440 41308

30.09.2020Thursday, October 1, 2020 1

Good. Simple. Tax

mailto:[email protected]

Thursday, October 1, 2020 2

Picture: Thousand Words

Famous Quote!

• “If you fail, never give upbecause F.A.I.L means “FirstAttempt In Learning”.End is not the END, infactE.N.D means “EffortsNever Dies”, if you get Noas an answer, remember N.Omeans “Next Opportunity”.

Dr APJ Abdul Kalam


Ease of Doing Business – Rankings out of 190 -2014/2015/2016

/2017 /2018/2019/2020 www.doingbusiness.org

Country DB 2014 DB 2015 DB 2016 DB 2017 DB 2018 DB 2019 DB2020

Brazil 116 120 116 123 125 109 124Russian Federation 92 62 51 40 35 31 28

India 134 142 130 130 100 77 63

China 96 90 84 78 78 46 31South Africa 41 43 73 74 82 82 84

Singapore 1 1 1 2 2 2 2United States 4 7 7 8 6 8 6

*Note: New Zealand is No 1 :DB 2017/2018/ 2019/2020

Thursday, October 1, 2020

http://www.doingbusiness.com/

“well begun is half done”

….....Aristotle.


e-Invoicing


01.10.2020

“India is the only country that is doing it

(invoice to invoice matching).This is

unique….people will have to comply or they

will fall out of the GST Chain”.

David Raistrick,

Deloitte Global leader, for Indirect Tax.. ET, 25.10.2016

Thursday, October 1, 2020

7

Comments on Invoice Matching

No of B2B Trans: in

EWB-March 2019

Invoice Value Range Number (Lakhs) Percentage

Less than 50 K 139.16 32%

50 K- 1L 89.04 20%

1L-2L 80.90 19%

2L-5L 65.34 15%

5L-10L 32.93 8%

10L-20L 18.70 4%

20L-50L 7.81 2%

50L-100L 0.98 0%

More than 100L 0.49 0%

Total 435.39

No of Invoices

Reported in GSTR1

Invoice Value in Range 18-Jul 18-Aug 18-Sep

% of total

(Sep)

Less than Re. 1/- 144522 91303 73944 0.04%

Rs. 1 to 5000 70659111 67050677 84562050 40.77%

Rs. 5K to 10K 18721798 18618066 25376274 12.23%

Rs. 10K to 20 K 18412303 18691949 25240434 12.17%

Rs. 20K to 50 K 23763639 24782813 33330404 16.07%

Rs. 50 K to 70 K 6420343 6740614 8225155 3.97%

Rs. 70 K to 1 Lakh 6124660 6328925 7751131 3.74%

Rs. 1 Lakh to 2 Lakh 8111953 8428748 9561009 4.61%

Rs. 2 Lakh to Rs. 5 Lakh 6685842 7058084 7567706 3.65%

Rs. 5 Lakh to 10 Lakh 2934701 3153725 3214941 1.55%

Rs. 10 Lakh to 50 Lakh 2120413 2344974 2324978 1.12%

Rs. 50 Lakh to Rs. 1

Crore 115510 126537 120112 0.06%

Above Rs. 1 Crore 77440 86014 85435 0.04%

TOTAL 164292235 163502429 207433573 100.00%

Objectives of e-Invoice


Better Tax Payer Services

One Time Reporting, Reconciliation

IRN > GSTR1 > GSTR3B

Generation of e-Way Bill

Reduction In Tax Evasion

Efficiency in Tax Administration


Advantages of e Invoice

Features of e-Invoice


Unique Invoice Reference Number (IRN)

QR Code

Digitally Signed (e-Sign)

Generated from Invoice Registration Portal(IRP), through JSON file

Note: Only One IRN for each Invoice of the Supplier.

IRN Contains

• Unique Invoice Reference Number (IRN)

• 64 Character hash algorithm

1. GSTIN of Seller

2. Invoice Number

3. Document Type

4. Financial Year

• Ex: 35054cc24d97033afc24f49ec4444dbab81f542c555f9d30359dc75794e06bbe


QR Code Consists of

1. GSTIN of Seller

2. GSTIN of Buyer

3. Invoice Number

4. Invoice Date

5. Invoice Value

6. Number of line items

7. HSN of Major Commodity as per value

8. Unique IRN(hash)]


Applicability of e-Invoice

• Mandatory from 01.10.2020• Taxpayers Aggregate Turnover > 500 Crores• (Notification 61 dated 30thJuly, 2020)• In any preceding financial year from 2017-

18 onwards, Notification 70 dated 30.09.2020)

• Press Release dated 30.09.2020; Relaxation for the tax period October 2020, all the invoices mandated have to be uploaded before 2nd November,2020.


Applicability of e-Invoice

Documents requiring e Invoice:

• B2B Invoices

• Export Invoices

• Credit Notes

• Debit Notes


Non Applicability of e-Invoice

• B2C Transactions• Bill of Entry-Imports• SEZ Units• Insurer or a banking company or a financial institution,

including a non-banking financial company• Goods transport agency supplying services in relation

to transportation of goods by road in a goods carriage • Suppliers of passenger transportation service• e. Suppliers of services by way of admission to

exhibition of cinematograph films in multiplex screens


Modes of Creation of e-Invoice


Through GST System-Invoice Registration Portal(IRP)- Machine

to Machine

Small Taxpayers- through eight free accounting

software

API Based, SMS Based, Mobile app

based, offline tool(JSON file),

GSP Based & Web Based (Rarely)

Offline Facility - Bulk Upload Tool

Taxpayer prepares and uploads the file containing multiple IRN requests and e-invoicing system will process each one of them and return the IRN for all as applicable

Direct API integration

This is direct method of taxpayer system requesting for IRN and e-invoicing system will return the IRN

API Integration through GSP

The taxpayer system will route the request for IRN through GSP and e-invoicing system will return IRN

01-10-2020 19

Present Modes of e-Invoice Generation

Schematic Flow-IRN

IRN

Request

IRN request

received

IRN Generated

for all Invoices

Prepare Tax Invoice and

issue

Invoice Persisted (with IRN)

Receiver Accept/Reject

Taxpayer System/visibility

IRN System

Invoice Status

Updated

GST/E-Way Bill System

Generate GSTR-1/GSTR-3B

…..

Invoice Persisted (BI

Purpose)Generate e-Way

Bill

IRN Request

• IRN• EWB No (if

requested)• Signed QR Code• Signed Invoice

01-10-2020 21

E-Invoicing System

IRN Request & Response

e-Invoice, How it looks

IRN generated on the portal can be cancelled within 24

hours

IRN cannot be cancelled, if valid E-Way Bill exists for

that IRN

Once e-Invoice (IRN) is cancelled, then one more

IRN cannot be generated on same Invoice Number

01-10-2020 23

Cancellation of IRN

❖Verify e-Invoice by uploading signed JSON in portal

❖Verify QR Code using App which can be downloaded from the portal

Tools in Public Domain

Verify Signed Invoice

QR Code Verify App

Challenges In Digitization


Uniformity of DataInfrastructure Support

Behavioral Changes of Taxpayers

Outreach Activities

Adoption of IEC Measures

Relationship with Stake Holders

Important Links

•http://einvoice1.gst.gov.in•https://einv-apisandbox.nic.in• [email protected]• [email protected]•Feedback & Suggestions:• [email protected]


http://einvoice1.gst.gov.in/

https://einv-apisandbox.nic.in/




GST-e Invoicing

29Thursday, October 1, 2020


Thank You

“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do”.

………Pele

Final Thought