GST e-Invoicing is a new system introduced in India to streamline the invoicing process for businesses. It is an electronic invoicing system that helps businesses generate, validate, and share invoices digitally. The main objective of GST e-Invoicing is to bring efficiency, transparency, and reduce the compliance burden for businesses. The system will eliminate the need for manual entry of invoice data into GST returns, input tax credit reconciliation, eWay bills, and GST refunds.

• With GST e-Invoicing, businesses will be able to automate their invoicing process, which can lead to tremendous cost savings and increased efficiency.
• The system will help eliminate errors and inconsistencies in invoicing and reduce the possibility of fraud.
• The GST e-Invoicing system will also help businesses in maintaining a proper record of their transactions and making the compliance process more convenient.
• Overall, GST e-Invoicing is a significant step towards digitizing the Indian economy and improving the ease of doing business in India.

Cost savings : e-Invoicing can help businesses save significant costs by reducing printing, postage, and manual processing expenses
Efficiency : e-Invoicing can speed up the invoicing process, reducing the time and effort required for manual data entry and reconciliation
Compliance : e-Invoicing can help reduce compliance burden by eliminating the need for duplication or transfer of information from one system to another
Auto-population of information : With e-Invoicing, the invoice information provided to GSTN for generating Invoice Reference Number (IRN) can be used to auto-populate various other systems such as GST returns, input tax credit reconciliation, eWay bill and GST refunds
Accuracy : e-Invoicing reduces the risk of errors and inaccuracies by eliminating manual data entry
Ease of doing business : GST e-Invoicing significantly improves the ease of doing business by reducing the compliance burden and streamlining business operations

Step 1 : Businesses with an annual turnover of Rs. 50 crores or more must generate e-Invoices for B2B transactions starting from January 1, 2021. However, voluntary compliance was allowed from October 1, 2020.

Step 2 : Businesses can generate e-Invoices using their existing accounting or billing software. The invoice will be uploaded to the Invoice Registration Portal (IRP), which will validate and generate a unique Invoice Reference Number (IRN) for each invoice.

Step 3 : Once an IRN is generated, the e-Invoice must be digitally signed using a digital signature or a QR code, which contains the IRN and other relevant details of the invoice.

Step 4 : The supplier must provide the e-Invoice details to the recipient either by email, SMS, or any other electronic mode. The supplier can also provide a physical copy of the invoice if requested by the recipient.

Step 5 : The details of e-Invoices will be auto-populated in the supplier’s and recipient’s GSTR-1 and GSTR-2 returns, respectively. The details will also be auto-populated in the e-Way bill system, making it easier for businesses to generate e-Way bills.

1. GSTIN (Goods and Services Taxpayer Identification Number)

2. IRN (Invoice Reference Number)

3. Invoice date

4. Buyer’s GSTIN

5. HSN (Harmonized System of Nomenclature) code/SAC (Services Accounting Code)

6. Taxable value and discounts, if any

7.Tax amounts for CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), IGST (Integrated Goods and Services Tax), and Cess, if any

8. Shipping and billing address of the buyer and supplier

9. Place of supply

10. Item details – description, quantity, unit, and total value

11. Signature or digital signature of the supplier