E-invoice in GST: Know how enterprises with over Rs 5 cr turnover can generate e-invoice in GST

Steps to Generate E-Invoice under GST:
The Central Board of Indirect Taxes and Customs (CBIC) under the finance ministry through a notification last week had notified the reduction in the turnover threshold for e-invoicing or electronic invoicing. According to the notification, enterprises with a turnover of more than Rs 5 crore, from earlier Rs 10 crore, in any financial year will have to generate e-invoice for business-to-business (B2B) transactions including supply of goods and services and exports with effect from August 1, 2023.
Through the e-invoice system, Goods and Services Tax Network (GSTN) electronically authenticates B2B invoices uploaded by suppliers and an identification number is issued for every invoice by the Invoice Registration Portal (IRP). The invoice data authenticated is transferred from the IRP to the GST portal in real-time, eliminating the need to manually enter data at the time of filing GSTR-1 return.
The revised turnover threshold by CBIC will get more small enterprises into its ambit that have turnover between Rs 5 crore and Rs 10 crore. As of now, micro enterprises (turnover less than Rs 5 crore as per the new MSME definition) remain outside the e-invoice purview.

Here’s how to generate e-invoice in GST:

• 1. Create your GST invoices on your accounting/billing/ERP software in the prescribed format of e-invoice schema – a standard format for creating invoices that contains what is mandatory and what is optional
  • (a) Ensure that your software supports JSON file format in order to create the invoice in that format
• 2. Upload the JSON file for every invoice on the IRP. For every invoice uploaded, a 64-character Invoice Registration Number (IRN) (also called hash) is generated
  • (a) If your ERP or accounting software is integrated with IRP through a GST Suvidha Provider or integrated directly or through other means, the invoice data will be automatically shared by the software with IRP
• 3. The IRP will then validate your invoices and cross-check the central registry of GST in case of any duplicity of information
• 4. After validating the JSON files, the IRP will generate the IRN or hash for each invoice file and will also digitally sign the file
• 5. The IRP will then generate a QR code for invoices with details including your and the buyer’s or recipient’s GSTINs, all invoice-related information, invoice value etc
• 6. The digitally signed e-invoices with IRN and QR code on them will be sent to you and also shared with the GST system and e-way bill
  • (a)In the GST system, GSTR-1 form of the supplier and GSTR-2A of the buyer or recipient will be updated. Also, Part A of the e-way bill will be auto-populated