GST E Invoicing Software

E-invoicing under GST refers to the electronic generation of invoices as mandated by GST regulations. Similar to the requirement for GST-registered businesses to issue e-way bills when transporting goods, specific GST-registered businesses are also required to generate electronic invoices for Business-to-Business (B2B) transactions.

As of the latest updates, starting from August 1, 2023, e invoicing becomes mandatory for all GST-registered individuals whose aggregate turnover (as per their PAN) in any preceding fiscal year from 2017-18 onwards exceeds five crores.

To facilitate a smooth transition to e-invoicing, IndiaFilings introduces the LEDGERS GST e Invoicing software, which is designed to simplify and streamline the e-invoicing process for businesses.

Try LEDGERS today! 

e Invoicing under GST

 The e-Invoice system is a digital verification mechanism under India's GST framework, where B2B invoices are authenticated electronically by the GST Network (GSTN). This system facilitates the issuance of a unique identification number for every invoice via the Invoice Registration Portal (IRP), managed by GSTN.

Upon generation, all invoice details are instantaneously transmitted from the invoice portal to the GST and e-way bill portals. This synchronisation eliminates the need for manual data entry during the GSTR-1 return filing and the generation of part A of the e-way bills, streamlining these processes.

Benefits of the e invoicing system

The e invoicing system was implemented primarily to streamline GST return filing and improve reconciliation accuracy. Here’s a combined overview of its key benefits:

  • Streamlined Reporting and Efficient Record-Keeping: E-Invoicing facilitates one-time reporting of B2B invoices at the point of generation, eliminating the need to report in multiple formats. This simplification extends to maintaining sales and purchase registers, which can be effortlessly generated from e-invoice data, aiding in efficiently preparing GST returns under the new system.

  • Automated Tax Filing and E-Way Bill Generation: The integration of e-invoice data with the GST portal simplifies the tax filing process by auto-populating return forms and reducing manual efforts. Additionally, e-way bills can be seamlessly generated using this data, enhancing the logistics and transportation process.

  • Enhanced Reconciliation and Real-Time Trackinge invoice in GST minimises the need for reconciliation between financial records and GST filings, thereby saving time and reducing errors. Real-time tracking of invoices also speeds up the validation of input tax credits and reduces verification issues, leading to quicker financial turnovers.

  • Fraud Prevention and Elimination of Fake Invoices: With real-time data access, tax authorities are better equipped to detect and prevent fraudulent activities. Moreover, the e invoicing system helps eliminate the generation of fake GST invoices, preserving the tax system's integrity and ensuring compliance.

  • Reduced Audits and Enhanced Financial Management: The detailed, transaction-level information provided by e invoicing GST minimises the likelihood of audits and surveys by tax authorities, decreasing the administrative burden associated with tax compliance. This transparency builds trust and facilitates better financial management and cash flow for businesses.

E-invoicing offers several advantages, notably its effectiveness in reducing tax evasion. Since eInvoices are generated before transactions are completed, the opportunity for altering invoices is significantly reduced.

Businesses Eligible for GST e invoice

e invoice GST will apply to all businesses registered under the Goods and Services Tax (GST) system and issue Business-to-Business (B2B) invoices.

GST einvoice Applicability

As mentioned, The Indian government has steadily reduced the GST eInvoice limit for mandatory e-invoicing. As per the latest amendment, any business with a total turnover exceeding Rs. 5 crore in the previous financial year must generate e-invoices for all covered transactions. This revision came into effect on August 1st, 2023.

Transactions and Documents Requiring GST e-invoicing

If your business falls under the current threshold and deals with any of the following transactions, you must generate e-invoices through the GST portal:

  • Documents: 

    • Tax invoices, credit notes, and debit notes are defined under Section 34 of the CGST Act.

  • Transactions:

  • Taxable Business-to-Business (B2B) sales of goods or services

  • Business-to-Government (B2G) sales of goods or services

  • Exports and deemed exports

  • Supplies to Special Economic Zones (SEZs) with or without tax payment

  • Stock transfers or supplies of services to distinct persons within a SEZ

  • Transactions with SEZ developers

  • Supplies made under the reverse charge mechanism (Section 9(3) of the CGST Act)

Who is exempted from generating e nvoice GST?

While e invoicing GST is becoming increasingly mandatory, certain categories of registered persons are exempted from these provisions. Here's a breakdown of who can skip e invoicing for now:

  • Financial Institutions: This exemption covers a broad range of entities within the financial sector, including:

    • Insurers

    • Banking companies

    • Financial institutions

    • Non-banking financial companies (NBFCs)

  • Goods Transport Agencies (GTAs): If your business provides services related to the transportation of goods by road (in a goods carriage), you're exempt from eInvoice. 

  • Passenger Transport Service Suppliers: This exemption applies to businesses offering passenger transportation services.

  • Multiplex Cinemas: Registered individuals providing services through admission to exhibition of cinematograph films on multiplex screens are not required to generate e-invoices.

  • SEZ Units: Businesses operating within Special Economic Zones (SEZs) are exempt from e invoicing. It's important to note that this exemption applies only to SEZ units and not SEZ developers. 

GST invoice Format 

The e-invoice format, as specified in GST rules, is designated as Form GST INV-1. In simpler terms, the structure or schema for e invoicing is outlined through Form GSTR INV-1. This form serves as a standardised template for electronically recording invoice details. To report these details to the Invoice Registration Portal (IRP), they must be presented in JSON format.

 The e-invoice format encompasses eight main categories, under which various details will be provided. These categories are as follows:

  • Basic Details

  • Invoice Period

  • Preceding Document / Contract Reference

  • Receipt / Contract References

  • Supplier Information

  • Buyer Information

  • Payee Information

  • Delivery Information

Specific information, such as invoice item details, document totals, and additional data like port codes and batch details, must be included within these broad categories.

It's important to note that per the e-invoice format, specific details are mandatory when submitting invoice information to the IRP. However, including some details may be optional depending on the nature of the business and specific transactions. This structured approach ensures consistency and accuracy in the electronic reporting of invoices.

Mandatory Information for e Invoicing

When preparing eInvoices, specific details are mandatory to ensure compliance and accurate reporting. These essential details include:

  • Code for Supply Type: Indicating the supply type, such as B2B for business to business, EXPWP for export with payment, or SEZWP for SEZ with payment.

  • Code for Document Type: Identifying the document type, such as INV for Invoice, CRN for Credit Note, or DBN for Debit Note.

  • Document Number: The invoice number follows GST rules and regulations. 

  • Document Date: The date on which the invoice was issued. 

  • Supplier Legal Name: The legal name of the supplier, consistent with their GST registration. 

  • GSTIN of Supplier: The GST Identification Number of the supplier.

  • Supplier Address: The complete address of the supplier, including specific details like flat number and building number.

  • Supplier Place, State Code, and PIN Code: The location details of the supplier, including the place, state code, and six-digit PIN code.

  • Buyer's Name and GSTIN: The buyer's legal name, along with their GST Identification Number.

  • Place of Supply (State Code): Indicating the state code for the place of supply.

  • List of Items: Providing comprehensive information about the goods and services invoiced, including item descriptions, HSN codes, prices, and more. 

  • Document Total Details: Provide details of the document total, including taxes, discounts, and other relevant calculations.

  • Ship-To Details (if applicable): Furnishing details regarding the shipping location if different from the buyer's address.

 These mandatory details ensure e invoices conform to regulatory requirements and facilitate accurate and efficient record-keeping and reporting. 

Types of Documents Reported to the IRP

The  e invoicing system encompasses the following types of documents:

  • Invoices by the Supplier

  • Credit Notes by the Supplier

  • Debit Notes by the Recipient

Any other document required by law must be reported by the document creator.

Time Limit to Generate GST-invoices

The rules surrounding the timeframe for generating GST e-invoices have undergone recent changes. Here's a breakdown of the current situation:

A strict deadline exists for taxpayers with Aggregate Annual Turnover (AATO) exceeding Rs. 100 crore (as of May 1st, 2023). You must generate e-invoices for tax invoices and credit/debit notes (CDNs) within seven days of the invoice date. Please comply with this deadline to avoid your invoices and CDNs being considered non-compliant.

No specific time limit is mandated by law for taxpayers with AATO to generate e-invoices below Rs. 100 crore

Documents Required for E Invoicing

For e invoicing under the GST framework, the following documents are necessary:

  • Tax Invoices, Credit Notes, and Debit Notes: These should be issued in accordance with Section 34 of the CGST Act.

Applicable Transactions:

  • Taxable Business-to-Business (B2B) Transactions: Includes the sale of goods or services to other businesses.

  • Business-to-Government (B2G) Sales: Involves transactions where the government is the recipient of goods or services.

  • Exports and Deemed Exports: Transactions that involve sending goods or services out of the country or those treated as exports under GST laws.

  • Supplies to Special Economic Zones (SEZs): This can be with or without tax payment and includes supplies made to SEZ developers.

  • Stock Transfers or Services to Distinct Persons: Transactions within the same company but across different states or jurisdictions.

  • Supplies Under Reverse Charge: As specified under Section 9(3) of the CGST Act, where the recipient is liable to pay GST.

Procedure for Generating & Uploading the eInvoice

 The GST einvoice system follows a standardised format for generating and transmitting invoices. Here is a step-by-step process of how it works: 

Step 1: Generation of E-Invoice 

Taxpayers will generate invoices as usual but must also report these invoices electronically following the e-invoice schema, which includes mandatory fields. Key details required include:

  • Invoice Basics: Type, number, date

  • Supplier Information: Name, GSTIN, address

  • Buyer Information: Name, GSTIN, address, payment details

  • Transaction Details: Dispatch and item details, tax amount, payment status

  • Goods Details: Serial number, quantity, rate, GST rate, total value

The invoice data must be converted into JSON format using one of the following:

  • An updated accounting/billing system

  • A utility or tool integrating with the system, ERP, or via an offline tool

Step 2: Generation of Unique IRN 

Suppliers may generate a preliminary 'hash' (a unique code) using details like GSTIN, invoice number, and financial year. This is done using the SHA256 algorithm. If the hash is validated, it becomes the Invoice Reference Number (IRN).

Step 3: Uploading the JSON 

The JSON file of the invoice can be uploaded through various means:

  • Directly on the Invoice Registration Portal (IRP)

  • Via a GST Suvidha Provider (GSP)

  • Through third-party apps, including APIs

If the supplier generates a hash, it can be uploaded along with the JSON. Once the invoice is successfully uploaded, the seller must electronically capture and include the QR code and the Invoice Reference Number (IRN) on the physical invoice issued to the recipient.

Step 4: IRP Validation of Invoice Information

The IRP checks the uploaded JSON for accuracy and generates an IRN while ensuring there is no duplication in the Central Registry of GST. The generated IRN uniquely identifies the e-invoice throughout the financial year.

Step 5: QR Code and Digital Signature

Once the IRN is generated, digitally sign the e-invoice and the accompanying QR code. The QR code includes critical details such as supplier and recipient GSTINs, invoice number, date, invoice value, number of line items, and the HSN codes of main items.

Step 6: Data Transmission to E-way Bill Portal and GST System

The information from the IRP is shared with the GST system and the e-way bill portal, facilitating the auto-population of GST annexures. 

Step 7: E-Invoice Receipt Sent to Supplier’s ERP

Finally, the IRP sends the JSON file, IRN, and QR code back to the seller’s ERP system. The invoice is then forwarded to the buyer via email.

Here’s the video explaining the generation of an “e-invoice GST” using LEDGERS GST e Invoicing Software to avoid non-compliance,

Integration of e invoicing with GST Returns 

The integration of e invoicing with GST Returns involves a systematic process:

  • Validation and Registration: A GST eInvoice is eligible for inclusion in the corresponding GST return only after it has undergone validation and registration by the invoice registration system. This ensures compliance with established requirements.

  • Recipient Access: After successful validation, the e invoice becomes visible to the recipient within the new return system, allowing for viewing and necessary actions.

The primary objective of this integration is to facilitate the pre-population of GST returns, effectively addressing reconciliation challenges. With e Invoicing, invoice data can seamlessly populate the relevant sections of tax returns, eliminating the need for manual data entry.

Integrating e invoicing with GST Returns aims to enhance efficiency, accuracy, and compliance in the tax reporting process while reducing reconciliation-related issues.

Cancellation of eInvoices

When it comes to amending or cancelling e-invoices, there are specific rules and limitations: 

  • Partial vs. Full Cancellation: An e-invoice cannot be partially cancelled; it must be completely cancelled.

  • Reporting Within 24 Hours: If you decide to cancel an e-invoice, it must be reported to the Invoice Reference Number (IRN) within 24 hours of uploading.

  • No Post-24-Hour Cancellation on IRN: It's important to note that no cancellations are allowed after the initial 24-hour window has passed. In such cases, Cancellation must be made manually on the GST portal before filing returns.

Amendments to an eInvoice

Any amendments to an e invoice GST can only be performed through the GST Portal. If changes or corrections are required for an e-invoice, taxpayers must access the GST Portal and follow the designated procedure for making amendments.

Amending e-invoices through the GST Portal ensures accuracy and compliance with the GST system's regulations, allowing businesses to maintain accurate records and fulfil their tax obligations effectively.

Generate your GST eInvoices quickly with IndiaFilings’ LEDGERS Software.

Ready to simplify your GST e invoicing process? Look no further! IndiaFilings offers LEDGERS  GST e Invoicing software, that makes creating GST invoices a breeze. Don't waste any more time struggling with complicated invoicing systems.

  • Automatic e-Invoice Generation: Create GST e-invoices with QR codes directly from your web browser, mobile app, or API.

  • Multiple Generation Options: Choose your preferred method - web, mobile app, API, or Excel import.

  • Seamless e-Way Bill Management: Generate and share e-way bills for goods transportation within LEDGERS.

  • Simplified Tax Filing: Standardized formats and real-time data make filing GST returns effortless.

  • Reduced Workload: Save time and resources with automatic e-invoice generation and reduced manual data entry.

Contact our experts today and let us assist you in getting started with efficient GST e invoicing for your business.

Say goodbye to the hassle and hello to streamlined invoicing with LEDGERS!  

Accountant & Invoicing Software FAQ's

Who is eligible for E-invoice?

According to the guidelines prescribed by the GSTN, registered persons with a yearly turnover exceeding Rs.10 crores in any prior financial year, starting with 2017–18, are required to use e-invoicing system for B2B and B2C communications.

In which case e-invoice is mandatory?

Based on recent updates effective from October 1, 2022, companies having a turnover of more than 10 crores would be required to use e-invoicing.

How does the e invoice software price vary and why is LEDGERS considered a cost-efficient option?

The e invoice software price depends on several factors including functionality, scalability, and the level of support provided. For a cost-efficient option, consider LEDGERS gst e invoicing software offered by IndiaFilings. It's designed to be budget-friendly while still providing a comprehensive set of features that can be tailored to the needs of your business.

Can an e-invoice be canceled be fully or partially?

An e-Invoice cannot be partially canceled, it has to be canceled fully. Once canceled, it will need to be reported to the IRN within 24 hours. Cancellation done after 24 hours cannot be done on the IRN and needs to be manually canceled on the GST portal before the returns are filed.

How can an e-invoice be amended?

All the amendments to an e-invoice can be made only on the GST Portal.

How does LEDGERS simplify GST eInvoicing?

LEDGERS streamlines GST eInvoicing by automating invoice generation, ensuring compliance with GST rules, and facilitating direct integration with the GST portal for seamless eInvoice registration and management.

Can LEDGERS handle amendments or cancellations of eInvoices?

Yes, LEDGERS can manage the cancellation of eInvoices within the 24-hour window as prescribed by GST rules, ensuring compliance and ease of operation.

Is LEDGERS suitable for businesses not required to comply with eInvoicing?

Absolutely, LEDGERS is designed to cater to businesses of all sizes, offering comprehensive accounting features beyond eInvoicing, making it a valuable tool for financial management regardless of the eInvoicing mandate.

Can LEDGERS generate eWay bills along with eInvoices?

Yes, LEDGERS provides an integrated solution for generating eWay bills directly from the invoicing feature,

How can I get started with LEDGERS for GST eInvoicing?

Getting started with LEDGERS is simple. Contact IndiaFilings to set up your account and receive expert assistance in integrating LEDGERS into your business operations for efficient GST eInvoicing and financial management.

What is GST E-Invoice?

An e-invoice (electronic invoice) under GST is a digital document for B2B transactions uploaded to the Invoice Registration Portal (IRP). The IRP validates the invoice data and assigns a unique Invoice Reference Number (IRN) and a QR code. This ensures authenticity and simplifies tax filing.

What is E-Invoice under GST?

E-Invoice under GST refers to the electronic invoicing system mandated by the GST Council for reporting business-to-business (B2B) invoices. This system ensures interoperability and reduces discrepancies by providing a standardized format and real-time reporting of invoices.

How to Generate an E-Invoice for GST?

To generate an E-Invoice for GST, follow these steps: - Prepare the invoice using your LEDGERS GST e-invoice software. - Convert it into the standardised format (JSON). - Upload the JSON file to the Invoice Registration Portal (IRP). - The IRP validates the data and generates a unique Invoice Reference Number (IRN) and a QR code. - Download the digitally signed E-Invoice with the IRN and QR code for your records. Use the LEDGERS Software to create your GST e-invoices effortlessly.

What is the E-Invoice Limit in GST?

As of July 2024, businesses registered under GST in India are mandatory to generate e-invoices if their total turnover exceeds Rs. 5 crore in any financial year since 2017-18. This limit was previously Rs. 10 crore but was reduced in August 2023 to promote digitisation and enhance GST compliance.

What are the Benefits of Using E-Invoice Under GST?

E-Invoice under GST offers several benefits: - Reduces errors and mismatches in data. - Ensures faster and more accurate processing of invoices. - Facilitates seamless and automatic tax return filing. - Helps in tracking fake invoices, thereby reducing tax evasion. - Streamlines the GST compliance process

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Many small businesses pay lakhs in penalty every year to the Government for late filing various statutory returns. Such penalty or late fee paid is not tax deductible and is a drain on profitability. At IndiaFilings, our mission is to provide the most affordable services to our customers and help them avoid all late fee.To achieve our mission - we have built enterprise grade technology to help you proactively know the upcoming compliance and avoid penalty.Checkout our compliance services below, talk to an Advisor and stop paying unwanted late fees.

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Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

Customer Reviews For Accountant & Invoicing Software

IndiaFilings has over 1 lakh customers and we have completed over 7 lakh services through our platform. At IndiaFilings, we take pride in the services delivered by us and guarantee your satisfaction with our services and support. We constantly improve and strive to deliver the best accounting, financial or secretarial services through the internet.

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18 August 2021
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good service

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LEDGERS Accounting Software
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29 March 2021
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LEDGERS Accounting Software
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I am not clear with procedure of ledger software

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