{"id":19678,"date":"2020-11-18T15:38:36","date_gmt":"2020-11-18T10:08:36","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=19678"},"modified":"2020-11-18T15:38:38","modified_gmt":"2020-11-18T10:08:38","slug":"cbic-orders-implementation-of-gst-e-invoicing-from-january-1-2021","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/cbic-orders-implementation-of-gst-e-invoicing-from-january-1-2021\/","title":{"rendered":"CBIC orders Implementation of GST E-invoicing from January 1, 2021: Process &#038; it\u2019s Benefits"},"content":{"rendered":"\n<p class=\"has-drop-cap\">From 1st April 2021, the businesses whose turnover is well above Rs 100 cr would have to opt for the GST E-Invoicing system without an exception. The government has taken this decision in the direction of ease of doing business. <\/p>\n\n\n\n<p>The implementation of the system will let the government repair the revenue leakage which is quite prominent with the existing invoicing system. During the announcement of this system on 8 October 2020, the honorable finance minister ensures that with this system in place, the defaulter will find it difficult to perform the GST evasion activities and it would also ease out the compliances for the corporate.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/cbic-orders-implementation-of-gst-e-invoicing-from-january-1-2021\/#Applicability_of_GST_E-Invoicing_System\" >Applicability of GST E-Invoicing\nSystem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/cbic-orders-implementation-of-gst-e-invoicing-from-january-1-2021\/#Procedure_to_Generate_e-invoice_in_GST\" >Procedure to Generate e-invoice\nin GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/cbic-orders-implementation-of-gst-e-invoicing-from-january-1-2021\/#Key_Benefits_of_GST_E-Invoicing\" >Key Benefits of GST\nE-Invoicing&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/cbic-orders-implementation-of-gst-e-invoicing-from-january-1-2021\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_GST_E-Invoicing_System\"><\/span>Applicability of GST E-Invoicing\nSystem<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST E-invoicing system is not only available to business with Rs 500 cr annual revenue, but it will expand to cover more taxpayers under its ambit. As per the government plan, the system will also make available to taxpayers having <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> generating more than 100 cr of revenue per year. The system would be available to the said taxpayer by 1st January 2021.<\/p>\n\n\n\n<p>In the setup, the systems of the companies\nare connected with the GSTIN portal. The invoices issued by the companies will\nbe uploaded to the portal within twenty-four hours. The GST e-invoicing system\nwill soon supersede the e-way billing system as well as physical invoicing. The\nsystem is capable of rendering real-time data on invoices accessible to both\nsellers and buyers.&nbsp;<\/p>\n\n\n\n<p>In the presence of a GST e-voicing system, banks can get rid of innumerable documents for the validation process. The system is likely to improve the payment circle for the industries as well. Therefore; this system will provide plenty of advantages to businesses and tax administration in one way for another.&nbsp;<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/things-you-must-know-about-gstr-5-filing\/\">Things you must know about GSTR-5 Filing: How to go about it?<\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Progress of E-invoicing&nbsp;<\/h3>\n\n\n\n<p>According to the Finance Secretary, the\ngovernment has been constantly investigating the progress of the system and\nsome positive sign have been discovered in this regard. On the date of the\nlaunch, System manages to generate about over 8.40 lakhs Invoice Reference\nNumbers (IRNs), which was an overwhelming response by all means. And by the end\nof the first week of October, nearly 70 lakhs IRNs have been generated in the\nnew system.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Mechanics of e-Invoicing<\/h3>\n\n\n\n<p>The invoicing system seeks a unique\nidentification number known as Invoice Reference Number (IRN) against each\ninvoice. GSTN allows the taxpayer to avail of IRN through various\nmethods.&nbsp;<\/p>\n\n\n\n<p>As soon as the taxpayers avail the IRN from\nthe portal, the invoice detail &amp; IRN need to be submitted to the\npre-notified authority in the real-time scenario. After successful verification\nof the given credentials, the agency will then provide a digitally signed\ne-invoice to the supplier. The aforesaid agency can also transfer the invoice\ndetails to GSTN w.r.t auto-population of returns. To ensure immediate\nconfirmation, the invoice details would be accessible to the buyer on a\nreal-time basis on the GST portal.&nbsp;<\/p>\n\n\n\n<p>The invoice without an Invoice Reference\nNumber would be deemed invalid for GST purposes. On a whole, the GST\ne-invoicing system is giving an implication of an extended version of the e-way\nbill (EWB) system. As of now, it is essential for every business owners to\nanalyze. As of now, it is important for industry stakeholders to examine the\nconsultation paper released by GSTN along with the draft e-invoice format.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_to_Generate_e-invoice_in_GST\"><\/span>Procedure to Generate e-invoice\nin GST<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-46.png\" alt=\"Procedure to Generate e-invoice in GST\" class=\"wp-image-19708\" width=\"563\" height=\"229\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-46.png 1000w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-46-300x122.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/image-46-768x313.png 768w\" sizes=\"(max-width: 563px) 100vw, 563px\" \/><\/figure><\/div>\n\n\n\n<p><em><strong>Following steps would help you generate e-invoice in GST<\/strong><\/em><\/p>\n\n\n\n<ul><li>An invoice is created with the help of accounting and billing software as per the given format for E-invoicing.&nbsp;<\/li><li>A <strong><em>supplier<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Supplier\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> can take advantage of a standard hash-generation algorithm to generate a unique Invoice Reference Number (IRN). In case of unavailability of IRN, the IRP system would generate the same.&nbsp; <\/li><li>JSON file for each business to business invoice (created via third party software or accounting program) in addition to IRN, is uploaded on the IRP (Invoice Registration Portal).&nbsp;<\/li><li>The Invoice Registration Portal will authenticate the generated IRN linked with JSON uploaded by the supplier. The portal might also generate IRN and validate the file against the registry of GST for any replication. The IRN will act as a unique identity for the e-voice for the given financial year.&nbsp;<\/li><li>After the successful verification, the portal will update the invoice with IRP\u2019s digital signature on it and a QR code will be attached to the JSON file.&nbsp;<\/li><li>The same data will be communicated with the GST system &amp; E-way bill, which further utilized for the auto-population of GST Return.&nbsp;<\/li><li>The portal will forward the IRN as well as the JSON file to the supplier. The same will also be shared with the relevant buyer via registered email id.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Benefits_of_GST_E-Invoicing\"><\/span>Key Benefits of GST\nE-Invoicing&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>GST e-invoicing helps to overcome the requirement of multiple reporting for the <a href=\"https:\/\/corpbiz.io\/gst-return-filing\"><strong>GST return filing<\/strong><\/a>. With this system in place, one-time reporting would be enough.&nbsp;<\/li><li>Reduce the chance of invoice mismatching while reconciliation.&nbsp;<\/li><li>Being robust in nature, the GST e-invoicing system would be able to coordinate with multiple softwares seamlessly.&nbsp;<\/li><li>The supplier will be able to track the invoices in real-time.&nbsp;<\/li><li>Low manual intervention in the return filing process due to the presence of auto filing.&nbsp;<\/li><li>ITC&#8217;s claim process would turn out more subtle and easy.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> The new system is expected to ease out the invoicing complication for a lot of companies. The presence of the system will eliminate the need for generating separate e-waybills. Also, it is proposed to increase the invoice lending for the small companies registered under MSME. Apart from that, it would also allow businesses to prevent irrelevant paperwork and documentation regarding invoicing which in turn increases their efficacy.&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/interest-on-the-late-gst-payment-would-imposed-on-net-cash-tax-liability\/\">Interest on the Late GST Payment would imposed on Net Cash Tax Liability<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Circular_Refund_143_11_2020-GST-E-invoicing.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Circular_Refund_143_11_2020-GST-E-invoicing<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From 1st April 2021, the businesses whose turnover is well above Rs 100 cr would have to opt for the GST E-Invoicing system without an exception. The government has taken this decision in the direction of ease of doing business. The implementation of the system will let the government repair the revenue leakage which is [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":19723,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,153],"tags":[1221],"acf":{"service_id":"334"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3684,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19678"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=19678"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19678\/revisions"}],"predecessor-version":[{"id":19711,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/19678\/revisions\/19711"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/19723"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=19678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=19678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=19678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}